The Indian rupee fell to a historic low on Tuesday, crossing the ₹95 mark against the US dollar for the first time ever. The continuous decline in the value of the rupee has raised concerns among economists, traders, and the general public. At the end of trading, the rupee closed at ₹95.31 against the US dollar, falling by 82 paise compared to the previous day’s closing value of ₹94.49. During intraday trading, the rupee touched lows of ₹94.87 and even slipped further to ₹95.34 before slightly recovering at the close. Experts say the sharp fall in the rupee is mainly due to the strengthening of the US dollar in global markets, rising crude oil prices, foreign investors pulling money out of Indian markets, and increasing global economic uncertainty. The situation became more serious after Donald Trump returned as the US President for a second term, as his aggressive trade policies and new tariff-related decisions created pressure on emerging economies like India. A weaker rupee could make imports such as crude oil, electronics, and foreign goods more expensive, which may increase inflation and affect fuel prices in India. However, some sectors like IT services and exporters may benefit because they earn revenue in US dollars. Financial analysts believe the Reserve Bank of India may take steps to stabilize the currency if the volatility continues in the coming weeks.
