Explainer: Why Indian rupee is falling against US dollar

Business Sep 15, 2025

The Indian rupee has slipped 3.2% since April, marking its biggest fall since 2022-23.
This year's dip stands out following a period of weakening since late last year, with the currency dropping from 85.51 to 88.27 against the US dollar between April and mid-September.

Factors affecting rupee's fall

Tough global situations like US tariff tensions, the Russia-Ukraine war, and rising issues between Israel and Iran have all played a part.
Plus, many foreign investors pulled their money out of Indian stocks, making things worse for the rupee.
The good news? India's foreign exchange reserves are strong at nearly $700 billion as of early September 2025—so experts think this should help cushion any more wild swings for now.