The Fall in the Value of the Rupee is Not Only Versus a Weak Dollar But Against All Comparable Asian Currencies

New Delhi: The Indian rupee again hit a record low against the dollar. Reuters reckons that the Reserve Bank of India (RBI) “likely intervened to hold it above the psychologically significant 92 level.”

The rupee ended the day at Rs 91.9550 to a dollar, down 0.2%. But during the day, it had crashed to Rs 91.9850. The Rupee has continued to fall since 2025, with large capital outflows dominating sentiment. Since the 50% tariff was levied on India by President Trump, the Rupee has taken a hit.

The fall in the past few months has been precipitous. Today, with the Economic Survey asserting that the economy is expected to grow between 6.8%-7.2% in the next fiscal year, which is only a tad lower than the 7.4% projection for the current fiscal year, the fall in the Rupee was telling another story.

"The rupee’s valuation does not accurately reflect India’s stellar economic fundamentals," says The Economic Survey. It also goes onto say that the decline helps offset some impact of the steep U.S. tariffs. But the continued weak Rupee despite a little bounce after the EU trade deal is a matter of concern.

More so as the Rupee is not only falling versus a weak dollar, but also versus other Asian currencies. It has earned the monicker of the “worst performing Asian currency.”

Foreign investors have sold over $4 billion of Indian equities in January. This is in addition to the record $19 billion outflow from India in 2025. The usual direction of foreign money flow into India since liberalisation has been inward.

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