Indian rupee crashed to an all time low of 88 to the US Dollar on September 4th 2025. This is as low as Rupees has gone. It is raising inflationary and cost of living issues among citizens.
The biggest imports that consumers depend on, every day like crude oil, cooking gas, electronics, medicines, even edible oils will definitely become cheaper. Those families who are planning to travel to other countries, those who are sending their children to study in other countries and even those who are simply sending money to get their goods imported will now have to spend more.
Economists identify different causes of the slide. US currency has become better than ever because Federal Reserve keeps the interest rates high. At the same time, the foreign investors have been pulling money out of the Indian markets, further weakening the currency. This has been worsened by the fact that the cost of crude oil has been on the rise ever since India is using imports to meet its energy demand.
In as much as the Reserve Bank of India (RBI) should intervene to see that the trends do not plummet down, it cannot intervene to see that the trends fall down gradually as analysts believe. Volatility can be smoothed through intervention, but the overall pressure on the rupee is not expected to soften any time soon, a Mumbai-based currency trader said.
The depreciation of the rupee may benefit exporters of IT and pharmaceuticals but to an ordinary citizen, the shrinkage is reflected in rising inflation and reduced household spending. We cannot just see or experience the weakening of rupee as an economic headline anymore, but as a struggle that most people must fight day by day.
