Rupee hits record low of 87.29 against US dollar
The rupee dropped to 87.29 per US dollar on Monday, August 4, 2025, mainly because foreign investors are pulling out money and global trade tensions are heating up.
Interestingly, even as the rupee lost ground, Indian stock markets stayed upbeat with both Sensex and Nifty posting gains.
Why does this matter?
A weaker rupee means imports get pricier—so everyday things that come from abroad could cost more soon.
That's not great news for anyone watching their budget or investing.
On Friday alone, foreign investors sold off ₹3,366 crore in shares despite the market rally.
What else is happening?
The big trigger: US President Trump slapped heavy tariffs on 70 countries, making global trade more unpredictable.
Plus, oil prices dipped a bit after OPEC+ said they'd boost production in September.
The US dollar itself also slipped as talk of a possible Fed rate cut swirled after a key resignation there.