A Weaker Rupee: Five Years of Currency Depreciation

From 2021 to early 2024, the rupee weakened gradually, stabilising around ₹83 per dollar for much of that period. Since mid-2024 the story has changed. The rupee has fallen over 33% against the dollar since 2020, crossing 95 for the first time and periodically testing fresh lows. Several pressures converged: FII outflows, a widening current account deficit, elevated US interest rates and the Hormuz crisis driving oil prices sharply higher. Each added weight to a currency already under strain, turning a gradual slide into something sharper and harder to arrest.

IMA India’s Decoding India is a data-led series that explores the metrics shaping India’s economic and business landscape, presented through comparative visuals across Indian states or peer economies. The aim is simple: to make India’s progress easier to understand at a glance and to surface insights that matter for decision-makers.