Indian Rupee Fall: There have been huge fluctuations in the Indian currency rupee this year. Since the beginning of the year till now, there has been a decline of about 5 percent in the rupee. With this decline, the rupee has become the worst performing currency in the Asian markets. However, some relief from this decline may come from the reduction in repo rate by RBI.

Recently, RBI had decided to cut repo interest rates by 25 basis points. Also, RBI has purchased open market bonds worth Rs 1 lakh crore and has tried to reduce the dollar shortage through a swap of $5 billion. These decisions have brought some relief to the market but now everyone’s attention is on the US Federal Reserve meeting this week.

Effect of US Fed rate cut

According to a report published in CNBC Awaaz, market experts believe that the US Fed will announce a rate cut of 25 basis points in the December 9 and 10 meeting. This reduction provides support to the currencies of other markets. However, this time its impact on the rupee may be limited. Market experts feel that the US Fed rate cut will not have much impact on the Indian rupee.

Besides, India’s trade gap is continuously increasing and foreign investors are also not showing confidence in the Indian market. Due to which the rupee is continuously weakening. Experts believe that unless a trade deal is agreed upon between India and America, no major change is possible in the ongoing decline in the rupee.

Rupee declined again

On Monday, the first trading day of the week, the rupee declined and crossed Rs 90 per dollar. The effect of rising crude oil prices and continuous selling by foreign investors was seen on the rupee prices. In early trading, the rupee weakened by 16 paise to Rs 90.11 against the dollar.

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Indian Rupee Fall: On Tuesday, December 2, the second trading day of the week, the prices of the Indian rupee are once again registering a record decline. The Indian rupee has slipped against the dollar to its all-time low of 89.85 per dollar.

The rupee had created the record of its all-time low level yesterday and broke it the very next day i.e. today. Interestingly, this ongoing fall in the rupee is happening at a time when India has recently shown excellent GDP growth results for the second quarter of the financial year 2025-26. The country’s GDP growth rate is 8.2 percent. This decline in rupee is not a good sign for the Indian economy.

Rupee continues to fall

Such a big fall in the rupee was recorded in the year 2022 also, and now the same pressure is visible on the rupee again in 2025. Talking about the figures, the rupee has fallen by about 90 paise in the last one month.

On Tuesday, the rupee opened at 89.70 against the dollar in the foreign exchange market. However, within some time it declined and reached a historic low of 89.85. Talking about the last 6 months, the total fall of the rupee has been about 4.4 percent.

impact of us tariffs

Indian currency is also not getting support due to the impact of tariffs imposed by the American government. No consensus has been reached yet regarding the trade talks that have been going on for the last few days. Even after several official meetings, both the countries have not been able to reach any decision.

Due to continuous decline in rupee, increase in prices of many things is also possible. Especially such goods which are traded in dollars. The prices of crude oil, gold, machinery and fertilizers etc. may increase.

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Indian Rupee fall: There was a decline in the Indian currency market on Monday’s trading day. The value of the rupee slipped to an all-time low of 89.76 against the dollar. The rupee slipped below its record low of 89.49 made two weeks ago.

The surprising thing is that this decline has come at a time when India has recently registered an excellent GDP growth of 8.2 percent in the second quarter of the financial year 2025-26. That is, on one hand the country’s GDP is growing rapidly, while on the other hand the rupee is continuously weakening…

Why did the rupee fall?

There could be many reasons behind this decline in rupee. According to market experts, continuous selling by foreign portfolio could be one of the reasons for this. Foreign investors are avoiding betting on the Indian market or are investing cautiously. So far in the year 2025, foreign investors have withdrawn more than $16 billion from the Indian equity market. Such a large withdrawal increases the pressure on the currency.

Also, there has been no result yet regarding the ongoing trade talks between India and America. The effect of 50 percent tariff imposed by the US government is being seen on the trade balance. The country’s merchandise trade deficit reached a record high level in the month of October. Due to which the demand for dollars increased and the rupee weakened.

What will be the effect of fall in rupee?

The effect of weakening of rupee falls directly on people’s pockets. The prices of goods purchased in dollars increase. Its biggest impact is visible on import cost. The prices of crude oil, electronic goods, gold, machinery and fertilizers may increase. Due to increase in the prices of all these, even everyday things become expensive.

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The Indian rupee is moving towards a steady decline and has become more weaker against the US dollar. The rupee has set a new record of 88.33, while on Friday it was at 88.30. Analysts say that the price of the rupee still remains weaker than the currencies of other emerging markets. Economic experts believe that due to the global trade war, the rupee and pressure can remain in the coming time.

According to a report, the price of the rupee is likely to be between 87.65 and 88.45 in the next few times, that is, there is a possibility of further decline. But do you know that there is a poor country in Asia, whose currency is stronger than India, let’s know about it.

Which country’s currency stronger than India

The neighboring country of India is Afghanistan, where the currency Afghani (AFN) is doing amazing performance in the foreign exchange market. Afghani, who is generally weak due to war, terrorism and economic instability, overtook the Indian rupee (INR) and strengthened its position against the dollar. Experts say that this situation is not only the result of the monetary policies of Afghanistan, but also the impact of international aid and migrant remedies (the money that migrants send to their country).

Due to the strength of Afghani

Many major reasons are given behind the rise in the price of Afghani.

Strict policy of central bank: The central bank of Afghanistan controlled the money supply, making Afghani stable and strong.

Remove from abroad: The migrants living in the country and the funds coming from abroad increased the demand for local currency.

International aid: Financial assistance from various international organizations strengthened Afghanistan’s foreign exchange reserves.

Inflation control: The central bank controlled inflation through effective policies, causing the stability of currency.

As a result of these policies, the price of Afghani strengthened against the US dollar and in recent months, about 1 Afghani remained stable at the level of 1.26–1.29 Indian rupees. This situation makes Afghani more valuable than the Indian rupee.

Comparison of indian rupee

The Indian rupee is currently weaker than Afghani. According to currency experts, the stability has been affected due to continuous fluctuations in the Indian rupee and global economic pressures. Because of this, Afghani, which is the currency of a struggling country, looks stronger than the Indian rupee.

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