Rupee Crashes to Historic 90.24 per Dollar: Opposition Corners PM Modi as Economic Concerns Mount

Mumbai: India’s financial markets witnessed a jolting moment on Wednesday as the Indian rupee slid to a record-breaking low of ₹90.24 against the US dollar, triggering a fierce political storm and raising fresh concerns about the country’s economic trajectory. The sharp depreciation, despite multiple interventions by the Reserve Bank of India (RBI) in recent weeks, has become a flashpoint for opposition parties, who accuse the Modi government of failing to stabilise the currency.

Political reactions poured in through the day, with opposition leaders drawing pointed comparisons to Narendra Modi’s 2013 comments targeting the then UPA government when the rupee had weakened to 60. Trinamool Congress leader Sagarika Ghose noted that the rupee’s current slide “exposes the silence of the Prime Minister,” asking whether Modi still stands by the remarks he made as Gujarat Chief Minister. She posted on X, “The rupee is at 90 for the first time. In 2013, Modi mocked Manmohan Singh. What should we say now? Who is ‘mute’ today?”

Congress spokesperson Supriya Shrinate highlighted another past speech where Modi had warned that a weakening rupee would “destroy India’s trade competitiveness.” She remarked that those very warnings have materialised under his rule, saying India is now paying the price for “economic mismanagement and directionless governance.”

The Congress party’s official handle also questioned why the rupee continues to weaken so rapidly, demanding accountability from the Prime Minister and Finance Ministry. Meanwhile, Shiv Sena (UBT) leader Aaditya Thackeray criticised the government’s silence, stating, “The rupee has crossed 90+. Not a word from the Finance Minister. ‘Achhe Din’ seems to have been reserved for someone else.”

Why the Rupee Is Falling

Economists attribute the continued depreciation to a mix of structural and global factors:

• A widening trade deficit, driven largely by heavy imports of gold and silver.
• Falling exports, reducing dollar inflows.
• Weak foreign portfolio investment, with nearly $17 billion pulled out of Indian equities this year.
• Delays in finalising a US–India trade agreement.
• Increased hedging activity by importers ahead of the year-end.

On Tuesday, the rupee had closed at 89.96, but renewed dollar demand overwhelmed RBI’s resistance, pushing it past the psychological 90-mark just a day later. With the currency already down about 5% this year, India now ranks among the weakest performers in Asia, raising deeper questions about macroeconomic stability.