Indian Rupee Hits Record Low Against US Dollar

The Indian rupee slipped to a historic low today, closing at 88.20 against the US dollar. This marks one of the weakest levels ever for the currency.

Experts point to a combination of factors behind the fall. Large foreign equity outflows in recent weeks, rising crude oil import demand, and ongoing pressure from US trade tariffs have all weighed heavily on the rupee. Market analysts also note that the weakening Chinese yuan has indirectly impacted the Indian currency.

Data shows that in August alone, over ₹29,000 crore flowed out of Indian equity markets, compared to nearly ₹17,000 crore in July. These persistent outflows have created pressure on the currency.

The RBI, in its recent bulletin, flagged global trade policy uncertainty as a risk to India’s domestic demand. However, the central bank also pointed out that inflation trends are currently better than previously expected, offering some cushion to the economy.

Despite that, the rupee’s slide highlights the challenges India faces in balancing trade, investment flows, and currency stability in the middle of global economic headwinds.