Indian rupee hits record low: What it means for commodity prices and the economy

The Indian rupee plunged past the psychologically crucial ₹90 mark against the US dollar on Wednesday, its weakest level ever, making it the worst-performing currency in Asia. This sharp depreciation underscores mounting pressure from persistent foreign portfolio outflows, a record trade deficit, and stalled India-US trade negotiations. This persistent weakness raises critical questions about its underlying causes and the broader impact on commodity prices and the Indian economy.Historical Performance of INR vs USDThe Indian rupee has witnessed a persistent decline over the past decade, depreciating nearly 40% from ₹62 in 2014 to today’s record low beyond ₹90 per dollar. This year alone, the rupee weakened by over 5%, continuing a long-term trend. In mid-2022, INR hovered around ₹77.50, an