The Indian rupee tumbled to an unprecedented low against the US dollar on Thursday, triggering sharp political reactions and raising concerns about economic stability. The currency's fall has put the spotlight back on the government's economic policies, with Congress leader Priyanka Gandhi Vadra launching a direct attack on the ruling Bharatiya Janata Party (BJP).
Rupee's Historic Slide: The Numbers
In early trading sessions on Thursday, 04 December 2025, the Indian currency witnessed a steep decline. The rupee slumped by 28 paise to breach a critical psychological barrier, settling at an all-time low of 90.43 against the US dollar. This record-breaking depreciation marks a significant moment for the Indian economy, reflecting ongoing pressures in the global and domestic financial markets.
Political Firestorm Erupts
The dramatic fall of the rupee immediately ignited a political storm. Senior Congress leader Priyanka Gandhi Vadra seized the moment to criticise the BJP-led central government. In a pointed remark, she questioned, "What is their answer now?", targeting the ruling party over its handling of the economy and the currency's weakness.
Her statement is seen as a direct challenge to the government's narrative on economic management, suggesting that the record low rupee value is a failure of policy. This exchange highlights how currency volatility is becoming a central theme in India's political discourse, especially with the rupee's performance being a key indicator of economic health for many citizens.
Implications and Market Sentiment
The rupee breaching the 90-per-dollar level is more than just a numerical milestone; it carries real consequences. A weaker rupee makes imports more expensive, potentially fueling inflation. It also increases the cost of servicing India's foreign debt. While it can benefit exporters, the overall impact on a net-importing nation like India is often negative.
Market analysts attribute the slide to a combination of global factors, including a strong US dollar and elevated crude oil prices, alongside domestic outflows. The event underscores the challenges faced by the Reserve Bank of India in stabilising the currency amidst volatile global financial conditions.
As the news spreads, investors and the common public alike will be watching closely for the government's and the RBI's response to curb further volatility. The political debate ignited by Priyanka Gandhi's comments ensures that the economic issue will remain at the forefront of national conversation in the coming days.
