The Indian rupee weakened past the ₹91 mark against the US dollar for the first time ever, sliding to levels around ₹91.07 in intra-day trade on Tuesday, December 16, 2025, as sustained selling pressure and global uncertainties weighed on the currency.
📊 Historic Exchange-Rate Move
- 📍 Record Low: The rupee plunged about 36 paise in a single session to breach the ₹91 per US dollar level — an all-time low for the domestic currency.
- 📍 Recent Trend: The local unit has slid from around ₹90 to over ₹91 in roughly 10 trading sessions, reflecting increasing downward pressure.
This milestone comes shortly after the rupee previously sank past the ₹90 mark — itself a historic move — but ₹91 marks a fresh threshold in ongoing depreciation.
🧠 Why the Rupee Is Weakening
💱 Foreign Portfolio Outflows
Persistent selling by foreign institutional investors (FIIs) has reduced demand for Indian assets and dollar-matched selling has pushed the rupee lower.
🤝 Trade Uncertainty
Delays and uncertainty surrounding the India–US trade agreement negotiations have dampened market sentiment, adding to capital-flow pressures.
📈 Strong Global Dollar
A broadly strong US dollar against emerging market currencies has compounded pressures on the rupee, making imports costlier and strengthening the dollar against the INR.
📊 Trade and Capital Flows
The Finance Ministry identified factors such as a widening trade deficit and weak capital inflows as contributors to the rupee’s slide.
📉 Economic and Market Implications
A weaker rupee at this level has several implications:
📦 Higher Import Costs
Imports — especially crude oil and intermediate goods — become costlier in rupee terms, potentially adding to inflationary pressures.
📈 Exports Could Get a Boost
At the same time, a weaker rupee can make Indian exports more price-competitive globally, benefiting export-oriented sectors if sustained.
📊 Impact on Markets
Currency volatility often feeds into equity and bond markets, affecting investor sentiment and portfolio values.
🏦 RBI’s Role and Market Expectations
The Reserve Bank of India (RBI) has historically intervened to smooth sharp currency moves. Recent commentary from bankers suggests that the RBI may step up market operations if depreciation accelerates further — though not always defending any specific level. Reuters
Analysts say the rupee’s slide reflects flow-driven pressures rather than structural imbalance, and that future currency movement will depend on global dollar strength, FII flows, trade progress, and RBI actions.
