ThePrint CutTheClutter: Why Indian rupee is falling against weakening dollar as other currencies rise, & Trump tariff factor
Dec 3, 2025
The discussion centers on the Indian rupee hitting a record low against the dollar, exploring the political aspects of currency value. The contrasting strategies of India and China are highlighted, especially how China manipulates its currency to boost exports. Factors like tariffs, inflation, and capital outflows contributing to the rupee's decline are analyzed. The concept of healthy currency depreciation, along with its implications for exporters and inflation risks, adds depth to the conversation. Ultimately, a nuanced view of rupee fluctuations is presented.
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Rupee Depreciation Is Natural
- The rupee's value follows economic logic and naturally depreciates over time against the dollar.
- Shekhar Gupta explains depreciation reflects inflation differentials, trade deficits and is not purely political.
Two-Decade Rupee Timeline
- The rupee moved from about 40 to 80 per dollar over two decades, showing steady long-term decline.
- Shekhar Gupta charts each 10-rupee step and timing to illustrate the gradual depreciation pattern.
Rupee Weakens Despite Dollar Slide
- The recent rupee weakness is counterintuitive because most major currencies strengthened as the dollar weakened.
- India and Indonesia were exceptions with the rupee as the worst-performing Asian currency this year.