Why rupee's fall to 90/USD matters for you
The Indian rupee slid to a record low, breaching the 90 mark against the US dollar this December, before recovering to just under 90 later in the month.
This drop isn't just a finance headline—it has real-world effects on your wallet and the broader economy.
Why should you care?
A weaker rupee makes imported goods like fuel pricier, which can push up everyday costs and squeeze company profits.
With ₹1.55 lakh crore pulled out by foreign investors this year, there's added pressure on markets.
On the bright side, a cheaper rupee could help Indian exports become more competitive globally.
What's behind the slide?
It's a mix of things: big investor withdrawals, fewer exports but more imports in October, companies buying more dollars, trade tensions with the US, higher American interest rates, and global uncertainties.
Even oil prices dropped recently—but that hasn't been enough to steady the currency.
What happens next?
The Reserve Bank of India stepped in with a $5 billion swap to calm things down—and it seems to be working for now.
Experts expect the rupee to trade at around 86.22 by the end of this quarter, with forecasts suggesting it could move to 87.76 over the next year.