Indian Rupee Crosses Rs 90 Against USD for the First Time Ever

On Wednesday, the Indian rupee crossed the Rs 90 mark against the US dollar for the first time, reaching intraday highs of 90.2275 on December 3, 2025. This plunge in USDINR marks a historic low, driven by persistent pressures despite interventions from the Reserve Bank of India (RBI). Based on Multiple sources, some exporters wait to hedge, expecting better price levels, and others are expecting a slide in the Indian rupee.

Key Factors Driving INR Depreciation

Persistent uncertainties and tariff tensions between the US and India under President Trump fuel dollar demand, widening India's trade and current account deficits as imports outpace exports. Foreign institutional investor (FII) outflows continue relentlessly into late 2025, alongside repatriations that weaken capital inflows. The US dollar index is currently between 99 and 100 levels, with fading hopes for a Fed rate cut, according to multiple sources.

INR Performance compared to Global Currencies

The rupee shows relative resilience among Asian peers, depreciating less severely than the Japanese yen (down 8% to 8.8%) and South Korean won (down around 7%) against the USD from its recent high in 2025. Against G10 currencies, it trails only the British pound in strength, with USD down against the Euro by around 10% to 11% and the Chinese yuan by around 3%.

RBI Governor's Remarks on Rupee Fall

Recently, the RBI Governor Sanjay Malhotra stated the central bank does not target specific exchange rate levels, attributing depreciation directly to heightened US dollar demand from trade dynamics and tariffs rather than policy shifts. He highlighted that robust forex reserves provide ample buffers, with no external sector concerns, and expressed optimism for a favorable India-US trade deal to ease current account strains. Malhotra underscores RBI vigilance on risks, noting rupee movements reflect market forces where dollar demand drives falls, and rupee demand spurs appreciation.