Rupee fell 6.7% in 10 months, included among the weak currencies of the world! What is the reason?

Trinamool Congress (TMC) MP Kalyan Banerjee asked the Finance Minister in the Lok Sabha some questions related to the decline in the Indian rupee against the US dollar. Minister of State for Finance Pankaj Chaudhary answered this question. According to the latest data presented in the Lok Sabha by the Finance Ministry, there has been a huge decline in the Indian Rupee against the US Dollar in the current financial year.

In response to Kalyan Banerjee’s question, the Finance Ministry said that between April 1, 2025 and January 22, 2026, the rupee has declined by 6.7% against the dollar. This decline has brought the Indian currency into the category of worst performing currencies globally.

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Position against other currencies

According to the information given by the government, during the same period (1 April 2025 to 22 January 2026), many major currencies showed strength against the dollar. The euro gained about 8.7% and the Brazilian real gained 7.9%. At the same time, some currencies like Japanese Yen and Indonesian Rupiah also weakened but the fall of Indian Rupee was relatively higher. Apart from this, the Finance Ministry also said that while at the end of 2014, the price of 1 dollar was around Rs 63, by March 2026 it has increased to beyond Rs 92.

Main reason behind falling rupee

The Finance Ministry has made it clear that there is not just one reason but many complex economic factors are responsible for the fall of the rupee. According to the government, fluctuations in the dollar index and changing trends in capital flows globally have put pressure on the rupee. The increase in trade deficit, especially during the current financial year 2025-26, and the reduction in support from the capital account have added fuel to the fire. In addition, volatility in crude oil prices and interest rates levels in the international market have also negatively affected the exchange rate.

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RBI took steps

The Reserve Bank of India (RBI) has actively intervened in the foreign exchange market to control the volatility of the rupee. According to official data, in the year 2025, RBI made a net sale of US $ 51,714 million to maintain liquidity in the market and prevent excessive fluctuations in the rupee. This intervention was much higher than in previous years.

In the year 2024, RBI had made a net sale of $ 12,350 million, while in 2023 the central bank had made a net purchase of $ 18,135 million. It is clear from this that in recent years RBI has adopted the strategy of selling dollars to keep the rupee stable. Also, the central bank is constantly monitoring crude oil prices, dollar index and global geopolitical events, so that timely intervention can be done if needed.