The Indian rupee tumbled to a fresh all-time low on Monday, crossing the ₹90 mark against the US dollar. In early trade, the currency fell by 9 paise to ₹90.58 and later touched around ₹90.75 per dollar, continuing a steady decline in recent sessions.
Experts point to several reasons behind the rupee’s fall. Uncertainty around trade talks with the United States has unsettled investors, while foreign investors are withdrawing money from Indian stocks and bonds. This combination increases demand for dollars and reduces support for the rupee.
The country’s trade deficit is another key factor. India imports more than it exports, which increases the need for foreign currency and puts downward pressure on the rupee. Even though the Reserve Bank of India sometimes intervenes to stabilize the currency, these efforts have not been enough to stop the slide in the current market scenario.
The weak rupee has also affected the stock markets. Key indices posted losses as foreign investors continued selling shares. Analysts say that while India’s overall economy shows strong growth, the currency often reacts to short-term factors such as capital flows, trade developments, and global dollar strength.
For everyday consumers, a weaker rupee can make imported goods, fuel, and electronics more expensive. Travel abroad and education costs may also rise. On the positive side, exporters may benefit because Indian products become cheaper and more competitive internationally, potentially boosting overseas sales.
The fall in the rupee highlights the challenges India faces in balancing economic growth with global market pressures. While the currency decline benefits some exporters, rising import costs are likely to affect businesses and households. Policymakers and investors will need to closely monitor foreign capital flows and trade developments to navigate the months ahead.
Also Read: IndiGo to pay ₹5 billion after mass cancellations
