Rupee tumbled to a record low of ₹93 against the US dollar on Friday, leaving many investors and everyday citizens worried about rising costs. The slide comes as global oil prices continue to climb, and the dollar strengthens against most major currencies.
India imports most of its oil, so any surge in crude prices hits the economy hard. With Brent crude hovering near $110 per barrel, the country has to spend more dollars to fuel its industries, transport, and households. This rising demand for foreign currency naturally puts downward pressure on the rupee.
Foreign investors have also pulled money from Indian markets recently, adding pressure on the currency. March has seen notable outflows from equities, prompting concerns about market stability.
The Reserve Bank of India (RBI) has stepped in to support the rupee, selling dollars and using other monetary tools to limit the slide. But experts say the currency’s weakness could persist unless global oil prices stabilize or investor sentiment improves.
For the average Indian, a weaker rupee translates to more expensive imported goods, higher travel costs, and potential inflation, especially for essentials like fuel and cooking gas. Businesses dependent on imports also face rising costs, which could eventually filter down to consumers.
Also Read: Gold at ₹1,50,270, Silver at ₹2,59,900