The Indian Rupee has hit another record low ahead of the 2026 budget, settling at 91.97 against the US dollar. However, during the day, it touched as low as 92.02 against the US dollar.
The fall of rupee
aligned with the Indian stock market, as the benchmark indices ended the session in the red, a day after an impressive rally following the release of the Economic Survey 2025-26. Sensex closed 296 points lower or 0.36 per cent to 82,269.78. Meanwhile, Nifty settled almost 100 points lower at 25,320.65.
In 2025 alone, rupee saw a decline of around 6% against the US dollar before the end of the year.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said a potential decline in commodity prices could provide marginal support to the rupee, as lower import bills especially for crude and bullion would ease pressure on the current account.
Yesterday, the rupee breached the mark 92 for the first time, following the past few month trend amid broad weakness.
The Indian rupee’s recent weakness against the US dollar does not reflect the true strength of India’s economic fundamentals, according to the Economic Survey 2025-26, which makes a strong case that the currency is “punching below its weight”.
While the rupee underperformed in 2025, the Survey argues that this has more to do with external flows and global uncertainty than any deterioration in India’s macroeconomic health.
“Growth is good; the outlook remains favourable; inflation is contained; rainfall and agricultural prospects are supportive; external liabilities are low; banks are healthy; liquidity conditions are comfortable; credit growth is respectable; corporate balance sheets are strong; and the overall flow of funds to the commercial sector is robust. Policy dynamism and purposeful governance reinforce this backdrop,” it said.
