Indian rupee saw a record decline on Thursday. The Indian currency fell to Rs 88.45 per dollar. The tariff imposed by the American is considered to be the biggest reason for this. However, apart from tariff, there are many reasons, which are pressurizing the rupee. Will you know here in the coming days, such a decline in the rupee will continue and what are the reasons, which brought the rupee to its lowest level.
Will the decline continue even further
Despite the global pressure, analysts believe that there is no possibility of much fall in the rupee. He believes that the sharp decline in August and September has pushed the rupee into the ‘oversold’ zone, but there is scope for return. Because this decline of rupee against the dollar is related to America’s tariff policy. In which further changes are expected. Apart from this, India’s basic economic condition is strong. The market’s sentiment is also positive due to the recently cut by the government. Which is expected to improve further.
What is a matter of concern?
Experts believe that the recent weakness of the rupee is not a cause for concern, because the state of the Indian economy is strong. This decline is “just emotional”, not the real picture of India’s economic health. Apart from this, by interfering with RBI, it is limiting ups and downs. Globally, the US Federal Reserve policies can weaken the dollars. In such a situation, the dollar-Rupaya is less likely to last longer than 88. Instead, stability is more possible in the radius of 86.588, unless there is a new tariff dispute or geopolitical crisis.
Now we know that 5 reasons, which brought the rupee under pressure
1. Selling of foreign investors
There is pressure on the rupee due to the frequent selling of foreign institutional investors. Investors have been selling strongly in the Indian stock market since July. In the current year, investors have extracted 1.38 lakh crores from the Indian market. There has been a withdrawal of 7400 crores in September alone.
2. Crude Oil Prices
The recent increase in crude oil prices has also come under pressure amidst the ongoing instability worldwide. On Wednesday, oil prices increased by more than $ 1 per barrel. India is a major importer of crude oil. India imports most oil of its need. When oil is expensive, you have to pay more in dollars. The rupee comes under pressure.
3. Tariff
There is also the effect of American tariff on the falling Indian rupee against the dollar. The Trump government has imposed 50 percent tariff on India. This has increased the possibility of decreasing exports. Due to decrease in exports, the dollars received by India decreases. That is, the dollar deficiency makes the rupee weak.
4. Geopolitical tension
The growing geopolitical stress around the world has also affected investors’ settings. Gen-Z revolution in India’s neighboring Nepal, tension in Japan and France has increased. Here, attempts to end the Russia-Ukraine war have failed. Geopolitical tension affects the currency of countries. Investors are looking for safe investment.
5. Trade Defisit
According to a report by Union Bank of India, India’s trade deficit stood at around $ 26.1 billion in August 2025. Increasing trade deficit means imports have exceeded exports. That is, the country is needing more dollars. There will be a demand for more dollars. There will be pressure on the rupee.