Rupee vs Dollar: Indian currency rupee is at its lowest level these days. On Wednesday, the rupee broke the 90 level and reached an all-time low. The biggest reason for this decline in rupee against dollar is the higher demand for dollar against rupee in the market.
Apart from this, continuous selling by foreign investors, geopolitical uncertainty, stalled talks on trade deal can also be held responsible for the fall in the rupee. Union Finance Minister Nirmala Sitharaman has now given a statement regarding this fall in the rupee. She believes that the Indian currency will find its way amid India’s strong growth outlook.
Rupee must find its own way
Speaking at the 23rd edition of the Hindustan Times Leadership Summit (HTLS), the Finance Minister said, “The rupee will have to find its own path.” The Finance Minister stressed that the debate on currency levels should include current economic realities and not compare them with past situations.
The Finance Minister said, “Look at the fundamentals of the economy, look at the growth. The debate on currency should be decided according to the current reality and not by direct comparison with past situations.”
Assess the strength of the economy: Finance Minister
The Finance Minister further said, “As far as the rupee-dollar exchange rate is concerned, when the value of the currency depreciates, the natural logic is that exporters should take advantage of it. Incidentally, some people say that at the time of US tariffs, it has provided some relief. Even if that is true, I am not entirely satisfied with that explanation – but it is true that the strength of the economy must also be assessed along with it.”
Let us tell you that on December 4, the Indian Rupee fell to its lowest level of 90.46 against the US Dollar, the main reason for which is the delay in the India-US trade deal and the continuous withdrawal of foreign capital from the Indian stock market. The special thing is that when retail inflation is at a record low and GDP growth is above 8 percent, then the weakening of the domestic currency against the dollar is surprising.
What will be the growth of the economy?
In the second quarter, GDP growth reached the highest level in six quarters at 8.2 percent. On the other hand, India’s retail inflation fell to a record low of 0.25 percent in October. The Finance Minister believes that the growth of the Indian economy will continue in the coming times and the overall growth this year (FY26) may be 7 percent or even more.
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