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 So far in the year 2025, foreign investors have withdrawn more than $16 billion from the Indian equity market.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.

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Rupee vs dollar: During the early trade in the Indian domestic market, on Tuesday, August 13, 2024, the rupee declined by 6 paise during early trade and it broke down against the dollar to 87.69. Foreign currency traders say that the Indian currency is trading in a very limited range due to the steps taken by the RBI to ensure that there is no drop in the rupee.

Weak rupee uncertainty in trade deal

The rupee opened at 87.63 per dollar in the Interbank Forex Exchange Market and reached a low of 87.69 against the US dollar in early trade, showing a weakness of six paise in the previous closed price. A day earlier, on Monday, the rupee closed at 87.63 with a strong 12 paise. It fell at 98.01 with a decline of 0.08 percent in the dollar index showing the US dollar position against six major currencies.

Strength in stock market

Domestic stock markets saw a boom on Tuesday. The BSE Sensex rose by 327.79 points to 80,563.38, while NSE Nifty-50 also closed at 24,599.55 with 112.15 points. International standard Brent crude was trading at $ 66.18 per barrel with a gain of 0.09 percent. According to the stock market data, foreign institutional investors (FII) purely sold shares worth Rs 3,398.80 crore.

Anuj Chaudhary, research analyst (commodity and currency) of Miraye Asset Sharekhan, says that due to the tariff war between India and the US, we estimate that the rupee will trade with a negative attitude. Continuous withdrawal of foreign institutional investors (FIIs) can also put pressure on the rupee. He said that the rupee can get support at a lower level due to weakness in US dollar and decreasing prices of crude oil.

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