Indian Rupee Crashes to Record Low of 88.50 Against Dollar

The Indian Rupee hit a fresh all-time low, closing at ₹88.50 per dollar, down 18 paise from Monday’s close of 88.32. This marks the weakest level ever for the currency in forex trading.

According to market experts, heavy dollar buying by Foreign Portfolio Investors (FPIs) is the immediate reason behind the fall. On Monday alone, FPIs sold equities worth ₹2,900 crore, putting additional pressure on the rupee.

Factors such as US tariffs on Indian goods, higher H-1B visa fees, and global trade uncertainties have also negatively impacted investor sentiment.

Though the Reserve Bank of India (RBI) is a key dollar supplier in the market, its intervention has been limited, failing to curb the sharp decline.

Experts note that despite ₹7,500 crore inflows from IPOs this week, the demand for dollars far exceeded the supply.

Adding to concerns, investors are adopting a risk-averse approach due to global uncertainties. However, there is speculation that the US Federal Reserve may cut interest rates by 0.25% in its October 19 meeting, which could provide some relief.

Earlier this September, the rupee closed at 88.44 per dollar, setting a record low at the time. Now, it has breached even that level, showing signs of persistent weakness.