Record breaking decline! Rupee crosses 91 against dollar, direct impact on your pocket; Will inflation increase again?

Dollar vs Rupee: The Indian rupee fell to Rs 91.02 against the US dollar on Tuesday, December 16. This is the lowest level ever. There has been huge pressure on the rupee due to foreign investors withdrawing money from the Indian stock market. The weakness of the rupee has a direct impact on the pockets of common people. Imports become expensive, be it petrol-diesel, mobile-laptop or the cost of traveling abroad.

The entire year was full of difficulties for the rupee. It reached a new record low on Monday. Rupee has become the worst performing currency of Asia in 2025. The rupee has fallen more than the currencies of Thailand, South Korea and Indonesia. The decline started in April 2022. Since then, the rupee has weakened by about 20 percent against the dollar. It has fallen by 29 percent against the Euro and by 23 percent against the British Pound.

understand in figures

• ₹91.02 – Rupee’s lowest level ever against dollar
• 20%- Rupee decline since April 2022
• 6%- decline only in 2025, highest in Asia
• $18 billion – Foreign investors have withdrawn from Indian stocks so far in 2025
• 50%- Tariff imposed by America on some Indian products

Why is the rupee weakening against the dollar?

Talking about the first reason, America has imposed 50 percent tariff on many goods coming from India. This has dealt a blow to India’s largest export market and US-India trade talks are also stuck. At the same time, the second reason is that foreign investors are withdrawing money from the Indian market. He is seeing better returns in America and other markets. Foreign investors have sold Indian shares worth $18 billion so far in 2025. More than $500 million in bond investments were withdrawn in December alone. Due to such huge amount of money leaving the country, there has been tremendous pressure on the rupee.

How will it affect your pocket?

Weak rupee means expensive imports. India fulfills more than 80 percent of its oil needs from abroad, hence petrol and diesel can become expensive. This will increase the prices of electronic goods like mobiles, laptops, iPhones. Apart from this, traveling abroad will also become expensive because the rupee has weakened against the dollar, euro and pound.

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Who benefits from weak rupee?

Exporting companies will definitely benefit from this. IT companies And drug makers earn most of their earnings in dollars, so rupee weakness increases their earnings. Rupee weakness is no longer just a currency issue. There is a danger of inflation increasing due to this. foreign investors The trust may waver. Although India’s economic growth has been better than expected, the falling rupee is becoming a major challenge to the entire growth story.