Rupee crashes to record low of 90.74 per US dollar:Foreign fund outflows, high US tariffs and weak RBI intervention add pressure

The Indian rupee fell to an all-time low of 90.74 per US dollar on Monday, 15 December 2025, pressured by continued foreign fund outflows. The currency opened 25 paise weaker in Monday’s session, according to PTI. So far in 2025, the rupee has depreciated by over 6%. It stood at 85.72 per dollar on January 1, but persistent selling by foreign investors has pushed it down to the current level of 90.74. Rupee Fall to Raise Cost of Imports and Overseas Expenses A weaker rupee makes imports costlier for India, increasing the prices of goods brought from abroad. It also raises expenses for Indians traveling or studying overseas. For example, when the rupee was at 50 per dollar, Indian students in the US needed ₹50 to get $1. Now, at around ₹90.47 per dollar, students must spend much more to obtain the same amount. As a result, expenses such as tuition fees, food, and accommodation have become significantly more expensive. Three Reasons Behind the Rupee’s Decline RBI Intervention Much Lower This Time LKP Securities VP–Research Analyst Jatin Trivedi said the primary reason for the rupee crossing the 90 mark is the lack of concrete progress on the India–US trade deal, with timelines being repeatedly delayed. This uncertainty has led to sharp selling of the rupee over the past few weeks. He added that record-high prices of metals and gold have pushed up India’s import bill, while high US tariffs have reduced the competitiveness of Indian exports. Trivedi noted that the RBI’s intervention has been significantly lower this time, which has further accelerated the rupee’s decline. With the RBI policy announcement due on Friday, markets expect the central bank to take steps to stabilize the currency. From a technical perspective, the rupee is currently deeply oversold. How Is a Currency’s Value Determined? When a currency loses value against the US dollar, it is referred to as currency depreciation or weakening. Every country maintains foreign exchange reserves, which are used for international trade and payments. Fluctuations in these reserves directly impact the value of the currency. If India’s dollar reserves are strong, the rupee tends to remain stable or strengthen. However, when dollar reserves decline, the rupee weakens; when they rise, the rupee gains strength. ​