Rupee sinks to 92 against US dollar: What’s impacted as India’s currency keeps sliding — explained
The rupee’s slide to a historic low of 92 against the US dollar on January 23 is beginning to pinch wallets, making everything from crude oil, electronics to overseas education and foreign travel more expensive, while offering some relief to exporters.The local currency slid to an all-time low of 92 per dollar during the day before recovering marginally to settle at 91.88 (provisional). The fall was driven by sustained selling by foreign funds, weak domestic equity markets and a risk-off sentiment in global markets.The previous record low closing level was recorded on January 21, when the rupee plunged 68 paise to settle at 91.65, PTI reported.So far this month, the rupee has depreciated by 202 paise, or over 2%. In 2025, it had fallen nearly 5% amid persistent foreign fund outflows and dollar strength.
Imports hit
A weaker rupee directly impacts imports, as buyers need to pay more rupees for the same quantity of goods priced in dollars. India is about 85% dependent on imported crude oil for fuels such as petrol, diesel and aviation turbine fuel.India’s import basket includes crude oil, coal, plastics, chemicals, electronic goods, vegetable oil, fertilisers, machinery, gold, pearls, precious and semi-precious stones, and iron and steel. With the rupee weakening, not only oil but also electronic items such as mobile phone components, certain cars and household appliances are likely to become more expensive.
Overseas education and trips abroad turn costlier
A depreciating rupee makes foreign education more expensive, as students have to pay more rupees for every dollar charged by overseas institutions.Similarly, foreign travel costs rise, since travellers must spend more rupees to purchase dollars for expenses abroad.
Silver lining
However, for non-resident Indians (NRIs), a weaker rupee is beneficial, as remittances sent in foreign currency translate into higher rupee value back home.
Exporters see mixed impact
Exporters are likely to benefit from the rupee’s fall as they earn more rupees per dollar. However, exporters who rely heavily on imported inputs may see their gains reduced due to higher input costs.In theory, sectors with low import dependence, such as textiles, stand to gain the most, while high import-dependent sectors like electronics may benefit the least.According to the latest data, India’s imports rose 8.7% to $63.55 billion in December 2025. The trade deficit stood at $25.04 billion, compared with $24.53 billion in November 2025 and $22 billion in December 2024.Crude oil imports, largely priced in dollars, increased by about 6% to $14.4 billion in December 2025. Silver imports surged by nearly 80% to $758 million, while gold imports declined 12% to $4.13 billion.
What experts say?
Think tank Global Trade Research Initiative (GTRI) said India needs to strike a careful balance between growth and inflation control, while rethinking its rupee management and trade strategies to achieve long-term economic stability.The Federation of Indian Export Organisations (FIEO) noted that while a weaker rupee improves the global price competitiveness of Indian goods.However, sectors with high import dependence such as gems and jewellery and electronics may see the currency advantage partly offset by higher input costs.
