New Delhi: On September 23, 2025, the Indian rupee reached a new low against the US dollar, which reflects both international and local forces. Early trading on Tuesday recorded a fall in rupee to 88.53 per dollar, a fall of 25 pais over its close. Already in the last session, it had dropped 12 paise to 88.28 indicating a consistent tendency of weakening against the greenback.
According to analysts, this fall is caused by a number of factors. In the international market, poor Asian currencies and slightly lowered index of dollar have caused volatility in global forex markets. However, more directly, new US policies are a concern to investors. Increased customs on Indian products and an introduction of a new charge of 100,000 dollars on H -1B visas are perceived as negative indicators. Such policies would reduce the rate of remittance and service exports out of India straining the rupee.
The rupee is on its way to record lows as market participants are considering the effects of the H-1B levy which could have, as Bhansali, head of treasury at Finrex Treasury Advisors, explained. He further noted that the internal risk aversion is also contributing the pressure though the reserve bank of India (RBI) is making an effort of offering some relief as the inflows of IPOs in small dollar amounts of Rs 7,500 crore. Nonetheless, the interventions by the RBI are minimal and there is still the chance of volatility.
This is also being impacted in the domestic stock markets. The Sensex declined 207.78, or 0.25, points on the same day, and the Nifty declined 68.40, or 0.27. On Monday, foreign investors sold equities to the tune of Rs 2,910.09 crore signifying the use of caution in the face of global and local uncertainty.
The pressure was furthered by the prices of crude oil and Brent crude futures went down by 0.62% to 66.16 a barrel. A weak domestic currency increases the prices of imports such as oil, a factor that will ultimately raise inflationary pressures.
As a reaction to the difficult situation, Commerce Minister Piyush Goyal is also heading a formal delegation to the US in trade negotiations. The team which has Special Secretary Rajesh Agrawal is working towards achieving agreements that may defuse trade tensions and facilitate exports. Successful such negotiations could stabilize the rupee and win investor confidence.
Personally, it is worrying, yet not surprising, that the rupee is on the downswing. The global uncertainties coupled with the changes in the US policies have formed the perfect storm of the currency. Businesses and investors depending on the inflow of the dollar will have to be cautious and regular citizens will experience the effect in prices of imported goods. Concurrently, such state of affairs may force policymakers to be more decisive in favor of the currency and the economy general.
