Published Dec 03, 2025 | 1:02 PM ⚊ Updated Dec 03, 2025 | 1:02 PM
Value of the Indian rupee dropped below ₹90 to the US dollar. (iStock)
Synopsis: For the first time ever, the value of the Indian rupee to the US dollar dropped below ₹90 to ₹90.27. Following the historic low, social media is flooded with criticism against the Union government.
For the first time ever, the value of the Indian rupee dropped below ₹90 to the US dollar on Wednesday, 3 December. It fell from Tuesday’s close of ₹89.94 to ₹90.27.
Experts noted that weak trade and portfolio flows and the uncertainty surrounding the India-US trade deal, including the Trump tariffs, had been having a negative effect on the currency.
Meanwhile, PTI reported that the fall was due to banks continuing to buy US dollars at higher levels, and continued outflows from Foreign Institutional Investors (FIIs).
“The rupee has been weakening with the Government of India and the Reserve Bank of India (RBI) wanting to help exporters and may have kept the dollar well bid in the past few days,” Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said.
“Nationalised banks were buying dollars at higher levels consistently yesterday (2 December)… There was a deal at 90.0050 after the close of market hours on the trading platform. The stalled India-U.S. trade talks and heavy Foreign Portfolio Investment (FPI) outflows are causing this fall in rupee despite a weakening dollar index,” Bhansali said.
He said the rupee might hit 91 levels in this cycle if the RBI support eases at 90.
Meanwhile, the Monetary Policy Committee (MPC) meeting starts on Wednesday, and the interest rate decision will be declared on 5 December, ahead of the Fed interest rate decision of the US on 1o December.
“A rate cut by the RBI could invite further selling of the rupee,” Bhansali added.
Following the historic low, social media is flooded with criticism against the Union government. Critics are also using old videos of Prime Minister Narendra Modi slamming the erstwhile UPA government over the fall in rupee value when he was the Gujarat chief minister.
The Opposition Congress took up the issue, noting the low performance of the Indian rupee.
“Economists predicted that Rupee will slide to ₹87 by the end of this year and it has already hit ₹90.26 (sliding faster than we type). What will be the situation on 31st December? Any predictions?” wrote the Kerala unit of the Congress on X.
Further, several X users slammed celebrities’ silenece, who were vocal against the UPA government.
“The Indian rupee has hit Rs. 90 today. Amitabh is silent. Akshay is silent. Anupam kher is silent. Juhi Chawla is silent These people used to mock Manmohan Singh when rupee was at 55. Shameless lot,” wrote a user.
However, there were also people who claimed that it would be good for the economy.
“Nothing to worry about Rupee depreciating against major world currencies. In fact it good for the economy as it encourages labour intensive exports from India, increases foreign exchange earnings and generates more jobs. High time that a so called ‘strong Rupee’ is seen as the symbol of economic strength at this stage of the economy. The Macho Rupee syndrome should be discarded immediately. Let’s try and change this public narrative which is detrimental to the country,” wrote former NITI Aayog Vice Chairman Rajiv Kumar on X.
