Rupee breaches ₹90 per dollar for the first time, widening economic strain

India’s currency slips to an all-time low of ₹90.02 against the US dollar, triggering wider economic concerns for families, students, importers and businesses.

The Indian rupee slipped past the crucial ₹90 mark against the US dollar on Wednesday, touching ₹90.02 in early trade, a level never seen before. Though the decline from the previous day’s 89.94 may appear small, the breach of this psychological threshold marks a significant moment for India’s economy.

The fall comes at a time when India imports a large share of essential goods, making currency weakness directly visible in daily expenses. With nearly 90% of crude oil, major electronic components, edible oils and fertilizers sourced from abroad, a softer rupee pushes up prices across sectors. Everything from smartphones and home appliances to fuel and packaged food is expected to get costlier in the coming months.

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Students planning or already studying overseas face some of the steepest impacts. A $50,000 annual tuition fee that cost ₹40 lakh when the exchange rate was ₹80/$ now amounts to around ₹45 lakh, adding about ₹5 lakh to the yearly expense. Families repaying dollar-denominated education loans will also see repayment burdens climb by 12-13% in rupee terms.

Small businesses reliant on imported equipment, software, or foreign travel are also bracing for tighter margins. Even a typical family holiday abroad becomes noticeably more expensive, with a $2,000 trip rising from ₹1.6 lakh to nearly ₹1.8 lakh.

The currency’s fall is being driven by a combination of global and domestic pressures. Recent trade disagreements with the US, including sharply higher tariffs on Indian exports, have dented sentiment. Foreign investors have withdrawn an estimated $17 billion from Indian equities in 2025, further weakening the rupee. Adding to this is a shift in the RBI’s approach: the IMF recently reclassified India’s exchange-rate management from “stabilised” to “crawl-like,” suggesting the central bank is allowing more gradual depreciation instead of defending fixed levels.

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Unlike past currency shocks, the rupee’s decline this time is not linked to a surging dollar. Instead, domestic factors and strategic policy changes are shaping the fall, even as the RBI sits on robust reserves of $690 billion.

With the rupee now below a symbolic barrier, the economic impact is set to deepen. From household budgets to overseas ambition and business costs, its effects will be felt widely unless stability returns in the months ahead.