Rupee Hits Record Low Amid Rising Trade Deficit

The Indian rupee has weakened sharply against the US dollar in recent months. Earlier, it took many years for the rupee to fall from 45 to 50 against the dollar—from July 2000 to November 2008, which was about 2,149 working days.

However, the recent fall has been much faster. The rupee dropped from 90 on December 3, 2025, to 92 on March 4, 2026, in just 60 working days. This shows how quickly the value of the currency has declined in a short period.

According to Pankaj Chaudhary, Minister of State for Finance, this information was shared in the Lok Sabha on Monday while answering a question about the falling rupee.

On March 23, 2026, the rupee touched a new record low of 93.92 against the US dollar. This is the weakest level the currency has reached so far.

The minister explained that the decline in the rupee during the financial year 2025–26 is mainly due to a rising trade deficit. This means that India is importing more goods than it is exporting, which puts pressure on the currency.

He also said that there has been relatively weak support from the capital account. This refers to lower foreign investments and reduced inflow of money from abroad, which normally helps support the rupee’s value.

Experts say that global factors such as rising oil prices, a strong US dollar, and international tensions are also affecting the rupee. These factors increase demand for the dollar, causing the rupee to weaken further.

Overall, the recent sharp fall in the rupee has raised concerns among policymakers and investors. The government and financial authorities are closely monitoring the situation and may take steps to stabilise the currency if needed.