Explainer: Why Indian rupee is falling against US dollar
The Indian rupee ended Tuesday at 88.77 per US dollar—just a hair above its all-time low from late September.
Over the past year, it's dropped 3.56% against the dollar, and 2025 hasn't been kind so far either.
Impact on inflation and oil prices
A weaker rupee means imported things like oil get pricier, which can push up inflation.
The RBI has been trying to keep things steady, but their interventions haven't stopped the slide.
Compared to other Asian currencies, the rupee has faced challenges this year.
What next for the rupee?
Strong global demand for dollars, shifting central bank policies, and geopolitical uncertainty are all weighing on the rupee.
The RBI has used spot sales and swaps to limit volatility, but big factors like oil prices and US Federal Reserve moves still hold sway.
Until the dollar cools off globally, analysts think the rupee will stay under pressure.