Currency News: 2 Reasons Why The Rupee is Slipping Against Major Currencies

The Rupee's slide isn't a mystery—it's a math problem with two clear variables.

Reason One: The Global Squeeze

Forget complex theories. When major central banks tighten the screws, capital flees emerging markets. It's a classic flight to safety, and the Rupee gets left holding the bag. The numbers don't lie—pressure mounts when the dollar flexes.

Reason Two: The Domestic Drain

Back home, widening trade gaps and import bills act like a slow leak. Export momentum stutters, energy costs bite, and foreign reserves face a steady drain. It's basic balance-of-payments arithmetic, and the result is a currency fighting an uphill battle.

So, while analysts debate the finer points, the trajectory is clear for now. It's the old story of external shocks meeting internal vulnerabilities—a recipe that rarely ends well for any fiat currency, much to the delight of those watching from the decentralized sidelines. Another day, another reason traditional forex feels like a rigged game.

INR’s Fallen Fortunes

The Indian rupee is having a serious crisis as it continues to decline dramatically against the US dollar. The rupee is now trading at 89, a threshold dubbed the lowest in INR’s trading history against the USD.

Per a recent post by the Indian Express, the recent INR plunge has been largely triggered due to the delay in the India-US deal, sustained by heavy foreign outflows and the absence of strong RBI support in the forex market. However, RBI has recently intervened, helping the currency stabilize at 89.22 to 89.23 in the last two sessions.

The rupee hit a fresh record low against the US dollar on Nov 27, extending a long slide that began in the early decades after Independence and sharply accelerated after the 1991 devaluation.

From around ₹22.74 per dollar in the early 1990s, the exchange rate crossed ₹42.48 by… pic.twitter.com/izaZt48kHg

INR History Against USD

The Indian rupee once projected a strong forex presence, trading at 22.74 against the USD in the early 90s. Moreover, INR was once stable at 44, soaring to 63 in the late 90s.

Per a recent CNBC report, INR is now the worst-performing currency of 2025. Experts have been predicting how it may take a while for the currency to bounce back to its former glory.

CR Forex Advisors MD Amit Pabari said