Rupee falls to all-time low of 90.05 against US dollar:FII outflows strengthening USD weaken Indian currency

The rupee on December 3 has reached its lowest level ever against the US dollar. According to PTI, the rupee opened 9 paise lower at 90.05 against the dollar today. Earlier on Tuesday, it closed at 89.96. The decline in domestic stock markets and continuous withdrawal of foreign funds have put pressure on the rupee. Rupee has weakened 5.16% so far in 2025 The rupee has weakened by 5.16% so far in 2025. On January 1, the rupee was at 85.70 against the dollar, which has now reached the level of 90.05. Fall in rupee will make imports expensive The fall in rupee means that importing things will become expensive for India. Additionally, traveling and studying abroad has also become more expensive. Suppose when the value of rupee against dollar was 50, Indian students in America used to get $1 for 50. Now students will have to spend 90.05 for $1. This will make everything from fees to living expenses and other things more expensive for students. Impact seen on market, Sensex-Nifty decline The continuous decline in rupee also had a negative impact on domestic equity markets. On December 2, Sensex closed at 85,138, falling 503 points. While Nifty also saw a decline of 143 points, it closed at 26,032. Experts said – Outflow increased concerns How is currency value determined?
When any currency’s value decreases compared to the dollar, it’s called currency depreciation. Every country has foreign currency reserves, which it uses for international transactions. Changes in foreign reserves affect the currency’s value. If India’s foreign reserves in dollars equal America’s rupee reserves, the rupee’s value will remain stable. If our dollar reserves decrease, the rupee will weaken; if they increase, the rupee will strengthen. This is called the floating rate system. ​