Overview
- The rupee hit an intraday record of 92 per US dollar on January 23 before a provisional close at 91.88.
- This month the currency has fallen about 202 paise, or just over 2%, after nearly a 5% decline in 2025.
- Higher dollar rates are set to make imported fuel, electronics and other goods costlier, with India sourcing about 85% of its crude oil from abroad.
- Overseas education and foreign travel become more expensive for households, while remittances sent in dollars convert into higher rupee amounts.
- Exporters generally gain in rupee terms, though import‑heavy sectors such as electronics and gems and jewellery may see the advantage eroded; GTRI and FIEO urge calibrated rupee and trade management as December imports rose 8.7% to $63.55 billion and the trade deficit widened to $25.04 billion.