Today the Indian rupee has touched another record low, and now it has fallen to 87.95 per US dollar. This fall is not just a financial number, but its impact is also going to be felt on the Indian economy, imports, inflation and the budget of the common man.
5 major reasons for the fall of Rupee
- Pressure of US Trade Tariffs
The US has announced new trade tariffs, which are putting pressure on Indian exports and the rupee. America has planned to impose new restrictions on steel and aluminum imports, due to which the risk of global trade war has increased.
- Exit of Foreign Investors
Foreign investors (FII) are withdrawing their money from the Indian market. From January 2025 till now, investors have withdrawn $7.5 billion of funds, which has weakened the rupee further.
- Intervention of RBI
Traders say that the Reserve Bank of India (RBI) has tried to stabilize the rupee by selling dollars through state-run banks. But the sentiment of the currency market is still weak.
- Global Market and Inflation
Uncertainty in the international market and the strength of the US dollar are also putting pressure on the rupee. Along with this, the inflation rate in India has also increased, which can become the reason for further decline in the value of the rupee.
- Impact of Crude Oil Prices
India is a major importer of crude oil, and rising global oil prices have a negative impact on the rupee. Higher oil prices mean more dollar outflow, which weakens the rupee further.
What will be its effect on the common man?
✔ Petrol and diesel will be expensive – Fuel prices may go up due to increase in crude oil rates.
✔ Imported gadgets and electronics will be costly – Dollar strength will have an impact on mobiles, laptops, and electronics.
✔ Foreign travel and education will be expensive – If you are planning foreign studies or travel, then you will have to pay more money now.
✔ Inflation will increase – Daily imported items may become expensive, which will impact the general cost of living.
Can the Rupee fall further?
Experts say that if RBI actively uses forex reserves and the government takes strong economic measures, there is a chance of stopping the fall of Rupee. But if the global market sentiment remains weak, then Rupee can fall further to the levels of 88.50-89.
Final Thoughts: Should you be worried?
Yes, if you are running an import-based business, planning an international travel, or want to avoid inflation, then this fall will impact you. But this can also be an opportunity for long-term investors, because better returns can be obtained after market correction.
What are your thoughts on this fall of rupee? Do you think that RBI will be able to control it? Share your views in the comment section!