Rupee Hits the 90s: Why Your Wallet is Crying (And How to Fix It)
Well, folks, it finally happened. The Indian Rupee (INR) has decided to throw a throwback party and hit the 90s. Sadly, we aren’t talking about 90s Bollywood music or affordable housing. We are talking about the exchange rate against the US Dollar.
As of December 2025, the Rupee has breached the psychological mark of ₹90 to the dollar [web:1]. If you thought your diet was the only thing crashing this holiday season, the currency markets beg to differ.
But before you start stuffing cash under your mattress (which, by the way, is a terrible inflation hedge), let’s break down what this actually means for the economy, your investments, and that dream vacation to Bali you’ve been planning since 2023.
The “Ouch” Factor: Why is the Rupee Falling?
Think of the Rupee like a student who forgot to study for the finals. The global economy is the strict invigilator. Several factors are dragging our beloved currency down to these record lows [web:2].
- The Dollar is on Steroids: The US Dollar Index is flexing its muscles. With high interest rates in the US, investors are pulling money out of emerging markets like India and parking it in American assets. It’s not personal; it’s just better yield.
- Trade Deficits: We are importing more than we are exporting. When we buy oil, electronics, or fancy chocolates from abroad, we pay in dollars. This demand for dollars pushes the Rupee down.
- FII Outflows: Foreign Institutional Investors (FIIs) have been selling Indian stocks like there’s no tomorrow, further weakening the local currency [web:2].
Your Expenses: What Gets More Expensive?
Here is the part where things get real. You might think, “I earn in Rupees, I spend in Rupees, why should I care?” Oh, sweet summer child.
1. Your Gadgets Just Got an Upgrade (in Price)
Planning to buy the latest iPhone or a high-end laptop? Brace yourself. most electronics are imported or use components priced in dollars. As the Rupee slides past 90, brands will pass that extra cost directly to you [web:7].
2. Petrol and Diesel
India imports a massive chunk of its crude oil requirements. Oil is traded in dollars. When the dollar gets stronger, our oil bill gets fatter. This usually trickles down to petrol pump prices, which then makes everything transported by trucks (i.e., vegetables, milk, Amazon packages) more expensive [web:16].
3. The “Study Abroad” Dream Nightmare
If you are funding a child’s education in the US, I am genuinely sorry. A fee of $50,000 used to cost ₹37.5 lakhs when the rate was 75. At ₹90, that same fee is now ₹45 lakhs. That is a ₹7.5 lakh jump for doing absolutely nothing different [web:4].
The Silver Lining: Who actually Wins?
It’s not all doom and gloom! Some people are popping champagne (domestically produced, of course) right now.
- IT and Pharma Exporters: Companies like TCS, Infosys, and Sun Pharma earn in dollars. When they convert those earnings back to Rupees, their balance sheets look absolutely gorgeous [web:32].
- NRIs (Non-Resident Indians): If your cousin in New Jersey owes you money, now is the time to collect. Every dollar they send home buys more Rupees than ever before. Remittances are booming.
Smart Money Moves: How to Protect Your Portfolio
You cannot control the RBI, but you can control your SIPs. Here is how to Rupee-proof your wealth.
Diversify Internationally
Don’t keep all your eggs in the Indian basket. Investing in US-based mutual funds or ETFs allows you to gain when the dollar rises. If the Rupee falls, the value of your US investment goes up in Rupee terms [web:9].
Gold: The Old Reliable
Gold is essentially a dollar-denominated asset. When the currency weakens, domestic gold prices usually shoot up. It’s the classic hedge that your grandmother was right about [web:30].
Stick to Export-Oriented Stocks
As mentioned earlier, sectors like IT, Textiles, and Chemicals benefit from a weak Rupee. Adding exposure to these sectors can act as a natural hedge for your portfolio against currency depreciation [web:26].
Conclusion: Don’t Panic, Just Pivot
The Rupee hitting 90 is a headline grabber, but it’s not the end of the world. Economies are cyclical. While your foreign trips might need a budget revision, the Indian domestic growth story remains intact.
Focus on increasing your income (maybe start that side hustle?) and diversifying your investments. And hey, maybe this year, explore “Incredible India” instead of Europe. It’s cheaper, and you won’t need a visa!
Frequently Asked Questions (FAQ)
Let’s not manifest negativity! While 90 is here, reaching 100 would require severe economic distress. Most experts believe the RBI will intervene with its forex reserves before it gets that ugly [web:14]. However, in the long run, currencies of developing nations tend to depreciate slowly.
Absolutely not. Stopping SIPs when the market is down or volatile is like refusing to buy clothes during a discount sale. Rupee depreciation might cause short-term pain, but long-term compounding still works. Stick to the plan [web:12].
If you are an NRI, yes! Your dollars go much further now. For residents, the Rupee fall doesn’t directly impact property prices immediately, but higher inflation (caused by costly imports) could eventually push up construction costs (cement, steel).
If you are paying for services directly in dollars (like some international software tools or hosting), your bill just went up. If you pay in Rupees, you are safe for now, unless the company decides to hike prices to offset their own dollar costs.
If only it were that simple! India cannot print US Dollars; only the US Federal Reserve can. We have to earn dollars by exporting goods or attracting investment. Printing more Rupees would only increase inflation and make the currency fall even faster.