Why is the rupee falling to 90 against the dollar now?

The rupee has slipped past 90 per US dollar for the first time, touching fresh lows near 90.2 and marking one of its steepest yearly falls in recent years. This move shows a mix of global dollar strength and India specific worries around trade and capital flows.

The fall is driven by a strong US dollar, delays in the India US trade deal, and steady outflow of foreign money from Indian markets. So importers like oil companies need more dollars, and because India imports most of its crude, the higher import bill increases demand for dollars and weakens the rupee. At the same time the Reserve Bank of India is intervening less aggressively than in earlier years, so the market is testing new levels without a firm defence.

For households, a weaker rupee means costlier petrol and diesel over time, higher prices for imported goods like electronics, and rising fees for foreign education and travel. But there is also a small benefit because exporters in sectors like IT services and textiles receive more rupees for every dollar they earn, which can support jobs in these industries. Going ahead, the path of the rupee will depend on how quickly the trade deal is settled, how the US interest rates move, and how actively the RBI uses reserves to calm sharp moves.