By Kavita Mistry 
India has entered a new economic reality. On Wednesday, the Indian rupee slipped past ₹90 per US dollar for the first time in history — a symbolic and financial milestone that directly affects households, businesses, and students. While the drop from ₹89.94 seems modest, its consequences will ripple across the economy for months, if not years.
Why the Rupee Crossed 90 — The Real Reasons
Three major forces pushed the rupee into uncharted territory:
1. Trade Tensions With the US
Recent negotiations collapsed, and Washington imposed steep tariffs — up to 50% — on several Indian exports. This dented investor confidence and affected earnings of key industries.
2. Massive Foreign Investor Exodus
Despite stable inflation and GDP growth, foreign portfolio investors pulled out $17 billion from Indian equities in 2025.
3. RBI’s Policy Shift
The IMF reclassified India’s exchange rate regime from “stabilized” to “crawl-like”, signalling that the RBI is now guiding — not defending — the rupee.
Instead of protecting it at all costs, the central bank is letting market forces play out, using its $690 billion forex reserve only when absolutely necessary.
How This Impacts the Average Indian Family
The ₹90/$ milestone is not just macroeconomics — it affects everyday life.
Costlier Fuel and Essentials
India imports 90% of its crude oil and over 60% of its edible oil. A weaker rupee means:
- Higher petrol and diesel prices
- Rising LPG costs
- Expensive cooking oil
Inflation will squeeze middle-class budgets further.
Electronics, Appliances & Cars Get Expensive
Imports — from iPhones to laptops to car components — become costlier immediately. Retail prices will rise over the next few months.
Foreign Education Becomes a Luxury
A student paying $50,000/year now pays ₹45 lakh instead of ₹40 lakh.
EMIs on student loans will also increase sharply.
Travel Abroad Costs More
A family trip worth $2,000 now costs ₹1.8 lakh instead of ₹1.6 lakh.
Who Wins? Who Loses?
Winners
- IT companies billing in dollars
- Remittance recipients, with monthly inflows rising by thousands
Losers
- Textile and manufacturing exporters, already hit by US tariffs
- Small businesses relying on imported components
- Students and borrowers with dollar exposure
What Should Families Do Now?
- Avoid dollar-denominated loans
- Hedge education payments
- Budget using ₹93–95 per dollar for 2026
- Invest remittances wisely
- Diversify across export-heavy sectors