Explainer: Why Indian rupee is at record low against dollar
The Indian rupee just slipped to a record 88.26 per US dollar, continuing its recent losing streak.
This drop is mainly due to US tariffs and big withdrawals by foreign investors.
For everyday folks and businesses, this likely means pricier imports and more pressure from inflation.
A weaker rupee can hit your wallet
A weaker rupee can hit your wallet, making imports and foreign expenses costlier.
The RBI did try to step in by selling billions of dollars from its reserves but has now let the rupee fall past the level it defended for months, possibly to help Indian exports stay competitive.
What are the reasons behind this fall?
It's a mix: tough US trade moves, foreign investors pulling out (over ₹8,300 crore left Indian stocks on Friday), and less demand for government bonds as yields rise.
Even though India's economy grew 7.8% in early 2025, these outside pressures could slow things down ahead.