Indian Currency Falls to A New Record Low of ₹90 Against the US Dollar 

Mumbai, December 3: The Indian rupee continues to see negative momentum and has hit a new record low of ₹90 against the US Dollar. As of 9:40 AM, the Indian rupee is trading at ₹90.020 against the US Dollar and is expected to fall even further as investor sentiments weaken. In 2025, the rupee has witnessed a significant fall so far and has fallen 5.17% against the US Dollar. 

What’s Driving the Downfall? 

There are numerous reasons that are contributing to the fall of the Indian rupee against the US Dollar. Key reasons are: 

Widening Trade Deficit 

India’s merchandise deficit, which is the difference between India’s exports and imports, increased to a record high of $41.68 billion in October. This increase in the merchandise deficit resulted in more demand for the US Dollar, and weakened the Indian rupee against the US Dollar. The merchandise deficit in October increased from $32.15 billion in September. Furthermore, the total Indian exports fell nearly 12% in October to $34.38 billion, while imports increased to $76.06 billion in October. 

US-Trade Deal Delay 

The fall in the Indian rupee is also a result of the delay in the US-India trade talks. Both the countries have failed to finalise a trade deal and Indian exporters are still facing around 50% tariffs on exports to the US. The US government imposed tariffs on India as a result of India buying Russian oil. 

The tariffs have lowered the growth of the Indian manufacturing sector, which saw a nine-month low growth in November. Furthermore, India’s trade deficit has hit its record high as exports to the US fell to 9% in November. 

Continuous FII Outflows

One other reason is the continuous sale of Indian equities by Foreign Institutional Investors (FIIs). So far in 2025, Foreign Institutional Investors (FIIs) have sold Indian equities worth ₹1,47,164 crore, or $16.78 billion, as per data released by NSDL. 

What’s Ahead for the Indian Rupee? 

The Indian rupee is continuing its weak run against the US Dollar and has fallen to a record low of ₹90 per US Dollar. As per industry experts the outlook for the Indian rupee in the near-term remains weak, and it may fall below the 92 mark. However, as per current reports, the Reserve Bank of India may have sold US Dollars to ensure that the Indian rupee doesn’t fall below the 90 mark. 

Going forward, it is important that the Indian government communicates with the US government to ensure a fair trade deal, and the removal of the current tariffs on Indian exports. If a trade deal is reached and tariffs are removed, it is possible that the manufacturing sector will pick up, and India will balance its merchandise and trade deficit. However, for now, the Indian rupee is expected to fall further, which may force the RBI to lower the interest rates in its upcoming monetary policy meeting. Analysts believe that the RBI may cut interest rates and announce Open Market Operations (OMOs) worth ₹2 lakh crore till March 2026. 

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