Indian Rupee fall: There was a decline in the Indian currency market on Monday’s trading day. The value of the rupee slipped to an all-time low of 89.76 against the dollar. The rupee slipped below its record low of 89.49 made two weeks ago.
The surprising thing is that this decline has come at a time when India has recently registered an excellent GDP growth of 8.2 percent in the second quarter of the financial year 2025-26. That is, on one hand the country’s GDP is growing rapidly, while on the other hand the rupee is continuously weakening…
Why did the rupee fall?
There could be many reasons behind this decline in rupee. According to market experts, continuous selling by foreign portfolio could be one of the reasons for this. Foreign investors are avoiding betting on the Indian market or are investing cautiously. So far in the year 2025, foreign investors have withdrawn more than $16 billion from the Indian equity market. Such a large withdrawal increases the pressure on the currency.
Also, there has been no result yet regarding the ongoing trade talks between India and America. The effect of 50 percent tariff imposed by the US government is being seen on the trade balance. The country’s merchandise trade deficit reached a record high level in the month of October. Due to which the demand for dollars increased and the rupee weakened.
What will be the effect of fall in rupee?
The effect of weakening of rupee falls directly on people’s pockets. The prices of goods purchased in dollars increase. Its biggest impact is visible on import cost. The prices of crude oil, electronic goods, gold, machinery and fertilizers may increase. Due to increase in the prices of all these, even everyday things become expensive.
Also read: SIP or PPF which is better for long term investment? Know where you will earn more
