Rupee falls to lowest level against the dollar

01-Dec-2025 06:07 PM

Mumbai. The Indian rupee's exchange rate continues its decline, and the Reserve Bank is making all efforts to curb it. Today, on December 1, 2025, in early trading, the rupee fell to 87.76 against the US dollar.

This is its lowest level ever, even below the lowest level of 89.49 reached nearly two weeks ago. The Indian rupee's decline has increased the Reserve Bank's concern.

Although the second quarter of the current financial year (July-September 2025) saw a spectacular increase in gross domestic product (GDP) and the economic growth rate increased to over 8 percent, the rupee's sharp weakness remains a matter of serious concern.

Between November 3 and December 1, the Indian rupee fell by nearly 100 paise (1 rupee) against the US dollar.

The rupee was among the worst-performing currencies globally in 2025. The rupee performed better only than the Turkish lira and the Argentine peso.

While the rupee's weakness will make Indian products cheaper in the global market and likely increase exports, imports from abroad will become significantly more expensive, potentially pushing up domestic prices.

Edible oils and pulses are imported into India on a large scale, accounting for the largest foreign exchange expenditure after petroleum, gold, and silver.

A robust 8.2 percent GDP growth in the second quarter led to equities soaring to record highs, and bond yields also surged, but the currency remained unaffected. Last week, on November 28th, foreign investors sold nearly $400 million worth of equities,

leading to a significant outflow of currency from India during the current fiscal year compared to the previous year. So far, more than $16 billion has flowed out of the country this year.