Rupee hits historic low, crosses 90

On December 3, 2025, the rupee recorded a historic low against the US dollar. This is the first time the rupee has crossed 90 against the dollar. Experts attribute this to the withdrawal of funds by large foreign investors, rising crude oil prices, and uncertainty surrounding the India-US trade agreement.

India relies on foreign imports for more than 80% of its needs, including crude oil, electronics, fertilizers, and edible oils. These imports are paid for in dollars. When the rupee weakens, the prices of these imported goods increase. This means that more dollars are spent to import the same goods than before.