The Indian rupee’s journey over the past four decades has been one of gradual erosion — a slide that has now brought it to a historic low, breaching the ₹90 per US dollar barrier. What was once a relatively stable currency against the dollar has been steadily weakened by structural and cyclical economic pressures. Initially, sustained trade deficits — with high import bills, especially for oil and commodities — increased demand for foreign currency, putting downward pressure on the rupee.

Over the years, repeated devaluations and macroeconomic imbalances reinforced this trend. In the most recent period, the rupee’s decline has been accelerated by large capital outflows as foreign investors pulled out funds, compounding forex demand. Weak inflows from foreign direct investment and external borrowings have further strained foreign exchange reserves. Meanwhile, as importers scramble for dollars — for essentials like crude oil, machinery, electronics — the rupee becomes more vulnerable.

Even against a backdrop of respectable GDP growth and economic optimism, the currency’s slide underscores deeper vulnerabilities: dependence on external financing, volatile global capital flows, high import dependence, and exposure to global price shocks. For the common citizen and businesses alike, this translates into higher import costs, inflationary pressures, and rising costs for overseas travel, education, and imported goods — a painful reminder that currency strength isn’t just about numbers, but about everyday lives and economic stability.