The BRICS TimesIndian Rupee’s Value Plummets to All-Time Low of $89.85 Against the US Dollar Today, December 2nd.
The Indian rupee faced a record drop on Tuesday, December 2nd. This marks the second trading day of the week. The currency slipped significantly against the US dollar. It reached its all-time low level of $89.85 per dollar.
Rupee’s New Low Amidst Strong GDP Growth
The rupee broke its own previous all-time low set just yesterday. This new record low is quite interesting. The sharp fall happens despite recent positive economic news. India reported stellar second-quarter GDP growth for the fiscal year 2025-26. The country’s GDP growth rate stands impressively at 8.2 percent. However, this continuing depreciation of the rupee is not a good sign for the Indian economy.
The Ongoing Depreciation Trend
A similar major decline in the rupee was noted back in 2022. The same intense pressure is now visible on the currency in 2025. Data reveals a significant weakening over the last month. The rupee has dropped by nearly 90 paise in this period. The currency opened at $89.70 per dollar in the foreign exchange market on Tuesday. It quickly fell further, hitting the historic low of $89.85. The rupee’s total decline over the last six months is approximately 4.4 percent.
Impact of US Tariffs and Trade Stalemate
The Indian currency is not receiving support due to the effect of US government-imposed tariffs. Trade talks have been ongoing for several days without any agreement yet. Despite many official meetings, both countries have failed to reach a consensus decision.
Possible Price Increases Ahead
This continuous fall in the rupee could trigger price hikes for many goods. This especially affects items traded using the dollar. The cost of crude oil, gold, machinery, and fertilizers, among others, may see an increase.
