Rupee at all-time low for second consecutive day: 28 paise down at 90.41 against dollar; Gold and crude oil will become more expensive…

Read Desk. Today, on December 4, the rupee has reached its lowest level against the dollar. According to PTI, the rupee today fell by 28 paise to 90.43 against the dollar. Yesterday, on December 3, it closed at 90.15.

The rupee has come under pressure due to continuous outflow of foreign funds. So far in 2025, the rupee has weakened by 5.5%. On January 1, the rupee was at 85.70 against the dollar, and now it has reached 90.41.

Imports will become more expensive

Falling rupee means that imports will become more expensive for India. Apart from this, traveling and studying abroad has also become expensive.

Suppose, when the rupee was 50 against the dollar, Indian students in the US could get 1 dollar for 50 rupees. Now, students will have to spend Rs 90.21 for 1 dollar. Due to this, everything from fees to accommodation and food will become expensive for the students.

Three reasons for the fall of rupee

US President Donald Trump has imposed 50% tariff on Indian imports, which may reduce India’s GDP growth by 60-80 basis points and increase fiscal deficit. This may reduce exports and reduce foreign exchange inflow. For this reason the rupee is under pressure.

Foreign Institutional Investors (FIIs) have sold Indian assets worth more than ₹1.03 lakh crore since July 2025. This is due to concerns about US trade tariffs. This has increased the demand for dollars (sales are converted into dollars), due to which the rupee is depreciating.

Oil and gold companies are buying dollars for hedging. Other importers are also accumulating dollars due to tariff uncertainty. Due to this there is pressure on the rupee.

This time there was very little interference from RBI

Jatin Trivedi, VP Research Analyst, LKP Securities, said, “The main reason for the rupee crossing 90 is that there is no concrete news on the India-US trade deal, and the timeline is being postponed again and again. Due to this, heavy selling has been seen in the rupee in the last few weeks.”

Trivedi further said that record-high prices of metal and gold have increased the import bill. High US tariffs have harmed the competitiveness of Indian exports. He further said, this time the intervention of RBI has also been very less, due to which the decline has increased further.

RBI’s policy is due on Friday, and the market expects the central bank to take some steps to stabilize the currency. Technically, the rupee is quite oversold.

How is the value of currency determined?

If the value of any other currency decreases compared to the dollar, it is called currency depreciation.

Every country has foreign currency reserves, which it uses to conduct international transactions. The effect of increase or decrease in foreign reserves is visible on the value of the currency.

If the dollar reserves in India’s foreign reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If the dollar depreciates, the rupee will weaken; If the dollar increases, the rupee will strengthen.