Rupee slumps 9 paise to close at an all-time low of 90.41 against U.S. dollar
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims·
Why in news
The Indian rupee hit an all-time low of 90.41 against the U.S. dollar on December 12, 2025, amid uncertainty over the India-U.S. trade deal and foreign fund outflows.
Background
The rupee depreciated by 9 paise to reach 90.41 against the U.S. dollar. The depreciation was attributed to importer purchases of dollars due to rising global precious metal prices and persistent foreign fund outflows.
Facts for Prelims
- FactRupee closed at an all-time low of 90.41 against the U.S. dollar on December 12, 2025
- FactDepreciation was driven by importer purchases of dollars amid rising global precious metal prices
- FactPM Narendra Modi and U.S. President Donald Trump discussed bilateral economic partnership on December 11, 2025
For Mains
Q. Analyze the factors influencing the volatility of the Indian Rupee and discuss the implications of trade deal uncertainties on India's external economic stability.
Dimensions to cover in your answer
- External shocks: Impact of global precious metal price volatility on domestic currency depreciation
- Capital flight: Challenges in managing persistent foreign fund outflows on forex reserves
- Trade diplomacy: Balancing bilateral trade concessions with domestic economic stability
Keywords: Currency Depreciation · Foreign Fund Outflows · Trade Balance · External Shocks · Bilateral Trade
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