Rupee Slumps To 90.43: Historic Low Hits Imports, Boosts Exports, And Impacts Everyday Life

Indian Rupee Hits Record Low

The Indian Rupee has recently gone past the 90-per-dollar mark, reaching an all-time low of 90.43. The reason behind this can be attributed to the outflow of foreign capital, a rapidly increasing trade deficit, and the still unresolved issue of the India–US trade agreement.

To the common man in India, this situation translates to higher prices for imported goods; thus, indirectly, inflation is lifted. However, it is not all negative, as exporters are given an advantage since Indian products are becoming more attractive in the global market. In other words, while the prices of your imported electronic products may go up, India’s export activities might prevail over others.

Impact Of The Weaker Rupee – How It Hits Everyone (And Yes, You Too!)

On The Indian Economy

• Inflation Alert! Imported goods, especially crude oil, just got pricier. Your wallet may feel the burn.

• Bigger Import Bill: Oil, gold, electronics… all costing more. Brace yourselves, savvy shoppers!

• Import-Dependent Industries Struggle: FMCG, plastics, and oil & gas sectors are sweating over higher costs.

• Exports Get a Boost: IT, textiles, and pharma are smiling as their products become cheaper for global buyers.

• Forex Stress Test: RBI may step in, but reserves could take a hit.

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On Individuals & Households

• Foreign Education & Travel Squeeze: Students and holiday planners, expect bigger bills abroad.

• Cost of Living Nudge: Household goods and fuel prices creep up, your budget, beware!

• Remittance Win: Got money coming from abroad? Congratulations, your rupees just grew stronger.

Factors Contributing To The Rupee’s Slump

• Persistent FII Outflows: Foreign investors withdrew around $17 billion from Indian equities in 2025, boosting demand for US dollars and putting pressure on the rupee.
• India-US Trade Deal Uncertainty: Delays and lack of progress on the trade agreement have dented market sentiment, contributing to the rupee’s decline.
• Widening Trade Deficit: India’s merchandise trade deficit hit record highs due to higher imports of crude oil, electronics, and gold, creating a supply-demand imbalance.
• Limited RBI Intervention: The Reserve Bank of India has opted for selective intervention, conserving foreign exchange reserves rather than defending a specific rupee level.

(With inputs)

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