The Indian rupee fell sharply on Friday, crossing the ₹89 mark against the US dollar — a record low. The fall was the steepest single-day drop since May, raising concerns about the currency’s stability.
Experts say several factors are weighing on the rupee. A strong US dollar, backed by solid economic data and reduced chances of a rate cut by the Federal Reserve, has made the rupee look weaker. Meanwhile, trade tensions with the US, including sanctions on some Indian firms involved in oil transactions with Iran, have added uncertainty.
Domestically, the trade deficit is widening as exports slow and imports, including gold, rise. Foreign investors have also pulled billions out of Indian markets this year, adding to the pressure on the rupee.
Analysts warn that the rupee could test ₹90 or more if these trends continue. The Reserve Bank of India (RBI) stepped in to support the currency after it breached ₹89, but its governor noted that there is no fixed target for the rupee’s value.
The rupee’s slide highlights India’s vulnerability to global market swings and domestic challenges. Without a shift in these factors, the currency may remain under pressure in the coming weeks, affecting markets and daily life alike.
For ordinary Indians, a weaker rupee can make foreign travel, education, and imported goods more expensive. For businesses, it raises the cost of imports while offering limited help to exporters facing slower global demand and tariffs.
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