Rupee Plunges: Can Indians Expect 90 per Dollar by December?

The Indian rupee fell to an all-time low against the US dollar on Monday, December 1, hitting 89.83 per dollar. This marks a new record low, surpassing the previous low of 89.49 recorded two weeks earlier. The decline is attributed to continued foreign portfolio outflows and growing uncertainty surrounding the India–US trade agreement, especially related to tariffs. These factors have negatively impacted investor sentiment.

The depreciation of the rupee also affected Indian stock markets, with key benchmark indices retreating from their historic highs and turning negative. Despite strong GDP growth of 8.2% in the second quarter, economists note that it has not eased the pressure on the rupee. The lack of progress in India-US trade negotiations, rising demand from importers for foreign currency, and a weakening balance of payments are leading concerns.

According to currency experts, although India’s real GDP growth remains robust, nominal growth has slowed due to persistently low inflation. While subdued inflation typically supports long-term currency stability, it has done little to shield the rupee from external pressures in the short term.

The situation reflects a complex mix of global and domestic challenges, with markets closely watching for developments in trade talks and capital flow trends. Further movement in the rupee is expected to depend on both global economic indicators and India’s trade dynamics in the coming weeks.

rupee, dollar, India US trade, GDP growth, inflation