Winning Bizness Desk

Mumbai.The Indian rupee fell to its lowest-ever value against the US dollar on 23 September, touching 88.49 in morning trade. This level surpassed the earlier record low of 88.46, registered just two weeks ago. The rupee opened at 88.41 per dollar, down by 10 paise, and continued to weaken further. On Monday, it had closed at 88.31 after losing 12 paise despite a slight decline in the dollar index in Asian markets.

Experts blame strong dollar and Asian currencies

Currency experts attributed the fall in the rupee to the weakness of other Asian currencies combined with the continued strength of the US dollar. Analysts noted that the pressure has been aggravated by the United States increasing tariffs and sharply raising H1B visa fees to 100,000 dollars. These twin moves have placed a double burden on the Indian currency, further pushing it downward.

Rupee weakens over three per cent in 2025

So far in 2025, the rupee has depreciated by around 3.25 percent. At the beginning of the year on January 1, it stood at 85.70 per dollar. With the fresh slide, it is now down to 88.49. According to currency experts, new policy steps by US President Donald Trump have weighed heavily on the rupee. Recent hikes in tariffs on Indian goods and the substantial increase in H1B visa fees are expected to hurt India’s exports and the information technology sector.

Imports and overseas travel costs to rise

A weaker rupee directly impacts the cost of imports, making foreign goods more expensive for Indian buyers. This decline also increases the cost of overseas travel and education. For example, when the rupee was valued at 50 against the dollar, Indian students studying in the US could obtain one dollar for 50 rupees. Now, with the exchange rate at 88.49, they must spend far more on tuition, accommodation, food, and other living expenses.

Explaining how currency value is determined

The value of a currency in comparison with the dollar is described as appreciation when it rises, or depreciation when it falls. Every country maintains foreign exchange reserves to handle international transactions, and changes in these reserves influence the currency value. If India holds foreign reserves on par with the US dollar stock, the rupee remains stable. A fall in reserves weakens the rupee, while an increase strengthens it. This system is known as the floating rate system.

Impact on trade and domestic economy

The rupee’s fall means India will have to spend more on essential imports such as crude oil, electronics, and machinery. Higher import bills can push inflation upward. At the same time, the rise in costs for students and travellers abroad adds additional pressure. Experts believe that unless the dollar eases or foreign inflows improve, the rupee may remain under strain in the coming weeks.

Summary pointers

• Rupee touched record low of 88.49 against US dollar
• Earlier low of 88.46 was crossed in morning trade
• Fall linked to strong dollar and weak Asian currencies
• US raised tariffs and hiked H1B visa fees sharply
• Rupee down 3.25 percent since January 2025
• Imports, overseas travel and education to become costlier
• Currency value depends on foreign reserves and floating system