Rupee's 20-Year Plunge: From 44 to 91 Against Dollar, Key Shocks Revealed

• The Indian Rupee depreciated from ₹44 to ₹91 against the US Dollar between 2005 and 2025, reflecting India's economic shifts and global events.
• The period 2005-2007 was the strongest for the Rupee (₹41-42/USD) due to high economic growth and strong FDI/FPI inflows.
• Major shocks included the 2008 global financial crisis, 2013's 'taper talk', the 2020 COVID pandemic, and the 2022 Russia-Ukraine war.
• Long-term depreciation reasons: inflation differential, current account deficit, dependence on capital flows, and strong dollar cycles.
• A weak Rupee makes imports, foreign travel, and education expensive, impacting inflation and common people, while RBI intervenes to stabilize.

Why It Matters: Rupee's 20-year journey from 44 to 91 reflects global shocks, domestic policies, and economic shifts.