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Rupee Hits 90 Against Dollar: Simple Explanation & Practical Tips
Why CMA Students Should Care
This rupee depreciation directly connects to your CMA syllabus topics like Forex Management, Cost Accounting, and Financial Management. Understanding this real-world event will help you in both exams and your career.
Hey there! If you’ve been checking the news recently, you’ve probably seen headlines about the Indian rupee falling to 90 against the US dollar. You might be wondering:
- What does this actually mean for my daily life?
- How does this affect my CMA studies or career?
- Should I be worried about my savings and investments?
Don’t worry – in this article, we’ll break down everything in simple language without confusing economics jargon. Whether you’re a CMA student, working professional, or just someone curious about finance, you’ll find practical insights here.
The Simple Explanation: What’s Happening?
Think of it Like This:
Imagine you’re shopping and the price of something you buy regularly suddenly goes up. That’s what’s happening with the US dollar – it’s getting more expensive for Indians to buy.
Before: 1 US dollar = ₹88
Now: 1 US dollar = ₹90+
This means you need more rupees to buy the same amount of dollars. For the Indian economy, this is like a price increase on everything we import from other countries.
The rupee crossed the 90 mark for the first time in November 2025. This isn’t just a small change – it’s a psychological barrier that’s making everyone from RBI officials to street vendors take notice.
Why Is This Happening? 3 Simple Reasons
1. Oil Prices Are Going Up
India imports about 85% of the oil we use. When global oil prices increase (like they have recently), we need more dollars to pay for the same amount of oil. This creates more demand for dollars and pushes the rupee value down.
Simple connection: Higher oil prices → More dollars needed → Rupee gets weaker
2. Foreign Investors Are Taking Money Out
Foreign Institutional Investors (FIIs) have been selling Indian stocks and taking their money back to their countries. When they sell rupees to buy dollars, the rupee’s value drops.
In 2025 alone: Foreign investors withdrew about $17 billion from Indian markets. That’s a lot of selling pressure on the rupee!
3. Trade Imbalance
India buys more from other countries (imports) than we sell to them (exports). This trade deficit means we’re constantly needing more dollars than we’re earning, which puts pressure on the rupee.
Current situation: With recent US tariffs on Indian goods and strong import demand, this imbalance has worsened.
Real Impact on Your Life & Career
How This Affects Your Pocket
- Petrol & Diesel Prices: Will likely increase since we pay for oil in dollars. Expect petrol prices to rise by ₹2-3 per liter.
- Imported Goods: Anything imported – from electronics to luxury items – will become more expensive.
- Foreign Travel & Education: Studying abroad or international trips become costlier as you need more rupees for the same dollars.
- Inflation: Overall prices in the economy may increase by 0.5-1% due to higher import costs.
Special Focus: How This Affects CMA Students & Professionals
This real-world situation directly connects to several parts of your CMA syllabus:
| CMA Subject | Connection to Rupee Depreciation | Exam Relevance |
|---|---|---|
| Financial Management | Forex risk management, hedging strategies, cost of borrowing in foreign currency | High |
| Cost Accounting | Material cost variance (imported raw materials become costlier), overhead allocation | High |
| Strategic Cost Management | Make vs. buy decisions, supply chain optimization, transfer pricing | Medium |
| Direct & Indirect Taxes | Customs duty calculations, GST on imports, foreign income taxation | Medium |
Practical Tip for CMA Students: When studying forex management, relate it to this real example. How would you advise a company importing raw materials? What hedging strategies would you recommend?
Practical Steps You Can Take Right Now
For Your Personal Finances
Review Your Investments
Consider increasing exposure to export-oriented companies (IT, pharmaceuticals) that benefit from a weaker rupee. Gold often does well when rupee weakens.
Plan Foreign Expenses
If you have upcoming foreign education or travel expenses, consider buying dollars in small amounts over time instead of all at once.
Diversify
Don’t put all your money in rupee-denominated assets. Consider international mutual funds (within RBI limits) for diversification.
For CMA Professionals & Business Owners
Review Import Costs
If your business imports raw materials, recalculate your costs with the new exchange rate. Update your cost sheets and pricing strategies.
Hedge Your Risks
Consider using forward contracts to lock in exchange rates for future transactions. This is textbook forex risk management in action!
Explore Local Alternatives
Look for Indian suppliers for materials you currently import. The “Make in India” push makes more economic sense now.
Quick Questions Answered
Most experts believe the rupee will trade between 90-92 for the next few months. The RBI is likely to intervene to prevent a free fall. However, much depends on global oil prices and foreign investor sentiment.
It’s a mixed bag. Bad because imports become costlier, increasing inflation. Good because exports become cheaper for foreign buyers, which could boost manufacturing and create jobs. The key is finding the right balance.
This is a perfect real-world example for your Financial Management and Cost Accounting papers. Understand how forex fluctuations impact material costs, pricing decisions, and risk management strategies. You might even get a case study based on this!
Only if you have specific future dollar expenses (like education abroad). For most people, converting all savings isn’t advisable due to exchange risks and RBI regulations. Instead, consider diversifying your investments.
What’s Next? Simple Outlook
Here’s what to expect in the coming months:
- Short-term (1-3 months): Rupee likely to remain around 90-92 level with RBI stepping in when needed.
- Medium-term (6-12 months): Depends heavily on oil prices and global economic conditions. If oil prices stabilize, rupee might recover to 88-89.
- Long-term: India needs to boost exports and reduce import dependence for sustainable rupee strength.
For CMA professionals: This situation highlights why forex risk management skills are so valuable. Companies need experts who can navigate these currency fluctuations effectively.
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Join our CMA preparation courses where we connect textbook concepts with real-world examples like this rupee depreciation.
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Final Thoughts
The rupee hitting 90 against the dollar is significant, but it’s not a crisis. It’s a market adjustment that happens in growing economies.
Key takeaways for you:
- This affects daily costs (petrol, imports) but also creates opportunities (exports, certain investments)
- For CMA students, this is practical knowledge that connects directly to your syllabus
- Smart planning and diversification can help you navigate this situation effectively
Remember, understanding these economic events makes you a better finance professional. Keep learning, stay curious, and connect what you study with what’s happening in the real world!
