The Indian Rupee experienced a significant depreciation, crossing the 90-per-dollar mark for the first time in early December 2025. This 'spectacular fall,' as described by the Times of India, saw the currency depreciate approximately 6% in 2025, although some data suggests a 4.71% weakening over the last 12 months as of January 9, 2026. In response to this, Reserve Bank of India (RBI) Governor Sanjay Malhotra clearly stated on December 5, 2025, that the central bank does not target specific price levels or bands for the rupee, preferring to let market forces determine its value. This policy stance is rooted in the economic concept of the 'Impossible Trilemma,' which asserts that a country cannot simultaneously achieve free capital flows, an independent monetary policy, and a fixed exchange rate. India, like many modern central banks, has chosen to maintain monetary independence and allow free capital movement, accepting exchange rate flexibility as a necessary consequence. Chief Economic Adviser V. Anantha Nageswaran also downplayed concerns, indicating that the government was not 'losing sleep' over the rupee's decline and believed it was 'not affecting inflation or exports' and would 'improve next year (2026).' While the term 'spectacular fall' might be slightly sensationalized, the factual claims regarding the rupee's depreciation and the RBI's adherence to the Impossible Trilemma framework are accurate and corroborated by other credible financial news sources and economic analyses. The RBI's primary mandate remains inflation control, with interventions limited to managing excessive volatility rather than defending a particular exchange rate level.