On Wednesday, the rupee reached a historic low of 90.30 against the US dollar during intra-day trading. (AI image)

Rupee has breached the 90 mark versus the US dollar for the first time ever, but the currency’s depreciation is not troubling the government. Chief Economic Adviser V Anantha Nageswaran on Wednesday said that the government remains unconcerned about the rupee’s decline.On Wednesday, the rupee reached a historic low of 90.30 against the US dollar during intra-day trading, declining 34 paise from its previous close, influenced by FII outflows and continuous dollar purchases by banks. The rupee has seen a 5 per cent decline against the US dollar in 2025, according to a PTI report.Speaking at a CII event, Nageswaran indicated that the government is not losing sleep over declining rupee. He also said that the currency’s depreciation has not impacted inflation or exports. He expressed optimism about the rupee’s potential recovery in the following year.The rupee’s decline is influenced by FII outflows and consistent dollar purchases by banks. The domestic currency faced additional pressure from declining equity markets and the lack of progress on an India-US trade agreement, traders noted.The currency had settled 43 paise lower at 89.96 against the US dollar on Tuesday, primarily due to ongoing short-covering by speculators and sustained dollar demand from importers.Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said, “The rupee slipped below the 90-mark for the first time, pressured by the absence of a confirmed India-US trade deal and repeated delays in timelines. Markets now want concrete numbers rather than broad assurances, leading to accelerated selling in the rupee over the past few weeks.”He noted that increased metal and bullion prices have negatively impacted India’s import costs, whilst high US tariffs continue to affect export competitiveness.“The rupee has been weakening with the Government of India and the Reserve Bank of India (RBI) wanting to help exporters and may have kept the dollar well bid in the past few days,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.He observed that nationalised banks consistently bought dollars at higher rates on Tuesday.The MPC meeting commenced on Wednesday with the interest rate decision scheduled for December 5, preceding the Fed’s rate announcement on December 10.Bhansali cautioned that an RBI repo rate cut could trigger additional rupee selling.