Mumbai: On Thursday, the rupee tumbled to a record low of Rs 90.46 against the US dollar in intraday trading, falling 49 paise-its largest single-day drop ever. This triggered concern among investors, importers, companies with foreign debt, and ordinary citizens, all anticipating rising costs and higher inflation.
From the opening bell, the rupee was under pressure. There was strong demand for dollars, so the rupee kept slipping, hovering between Rs 90.43 and 90.47 through the day. Analysts don’t see relief coming soon. The foreign exchange market just keeps squeezing the rupee, and the weakness looks set to last.
So, why is the rupee struggling like this? It’s a messy mix. The US dollar is running strong worldwide, foreign investors are pulling money out, import bills are climbing, and there’s more local demand for dollars than usual. All of this dragged the rupee down to its lowest level ever.
Hitting Rs 90 isn’t just a statistic. It signals bigger problems. When the rupee drops, imports get pricier—especially crude oil—which fans the flames of inflation. Companies that owe money in dollars get hit with bigger repayments, and people planning trips abroad or paying for overseas education find everything costs more.
Unsurprisingly, the sharp fall rattled the market. Traders and investors are glued to the rupee-dollar numbers, trying to guess what’s next. The Reserve Bank of India is watching closely and can step in if things get too wild, but as long as demand for dollars stays high, the rupee probably isn’t bouncing back anytime soon.
Disclaimer: The information provided is for general informational purposes only and does not constitute financial, investment, or professional advice. Readers should verify facts and consult experts before making decisions.
