Why the US dollar's decline is worrying global markets
The US dollar index has fallen sharply this year, dropping from about 110 to 97—a nearly 10% dip and its worst performance since 2017.
Weak job growth and rising unemployment have fueled worries about the economy, pushing the Federal Reserve toward more rate cuts.
What does a weaker dollar mean?
A weaker dollar can shake up global markets.
With the Fed already trimming rates by 25 basis points—and hinting at more cuts in late 2025 and into next year—the dollar's usual edge over other currencies is fading.
High US debt levels and big Treasury sales are also making investors nervous, sending some to gold or emerging markets instead.
Indian rupee's fall against the dollar
Even with the dollar down, the Indian rupee slid from 83 to 89 as foreign investors pulled out over export worries tied to tariffs.
Despite India's strong GDP growth and lower inflation, analysts say any recovery for the rupee depends on easing US trade tensions and continued weakness in the dollar.