As a consequence, the dollar’s relative value against the rupee (the exchange rate) fell. The puzzle becomes even more intriguing because the rupee is weakening even when the dollar is weakening. Simply put, she was pointing to a trend where every other currency was weakening against the dollar, not just the rupee. For the past few months, the rupee has been weakening even when the dollar is weakening (See CHART 1 ). The question is: Which of these factors are important when it comes to the movement in the exchange rate?

Source: Indian Express December 20, 2025 16:32 UTC