Continuous Decline This Week
The rupee’s downward trajectory persisted this week, with the currency losing 23 paise on Tuesday to settle at ₹91.01 per dollar, its weakest level ever. This marks the continuation of a slide that began earlier in December when the rupee breached the ₹90 mark.
Press Trust of India Report
According to the Press Trust of India, the latest fall underscores the worsening trend in India’s exchange rate. Over the past ten trading sessions, the rupee has shifted from ₹90 to ₹91 per dollar, highlighting the mounting strain on the currency.
Year‑Long Weakness
The depreciation has been consistent for nearly a year. On 16 December 2024, one US dollar was worth ₹84.91, while by 16 December 2025, the rate had weakened to ₹91.01. This represents a sharp decline of more than 7% in twelve months, despite India maintaining relatively strong GDP growth.
Month‑by‑Month Slide in 2025
- January 2025: ₹86 per dollar
- August 2025: ₹88 per dollar
- Early December 2025: averaging around ₹90 per dollar
- Mid‑December 2025: record low of ₹91.01 per dollar
Economic Factors Behind the Fall
Analysts point to several key drivers of the rupee’s weakness:
Widening trade deficit: India’s imports, particularly crude oil, have surged, while exports have struggled to keep pace.
Uneven capital flows: Foreign Institutional Investors (FIIs) have pulled out funds, reducing dollar inflows.
Strong US dollar: Global interest rate trends and the dollar’s strength have intensified pressure on emerging market currencies.
Inflationary impact: A weaker rupee makes imports costlier, raising inflation risks and affecting consumer purchasing power.
RBI’s limited intervention: The Reserve Bank of India follows a market‑determined exchange rate and intervenes only to curb volatility, not to fix levels.
Outlook
The rupee’s sharp depreciation highlights persistent macroeconomic challenges. While a weaker currency can make Indian exports more competitive, it also raises the cost of imports, fuels inflation, and complicates debt servicing. As 2025 closes, the rupee’s fall to ₹91.01 per dollar signals that India’s currency stability remains under strain, with global capital flows and domestic trade imbalances likely to shape its trajectory in 2026.