Currency Crunch: Rupee Hits Record Lows Amid Global Pressures

The Indian Rupee touched a new record closing low against the US Dollar on September 30, 2025, ending at 88.7875 after a previous close of 88.76. The currency depreciation reflects ongoing market concerns stemming from global macroeconomic uncertainties, rising crude oil prices, and foreign capital outflows. This decline marks a significant moment for the currency, intensifying the pressure on domestic economic policymakers.

 

Record Low Close

 

The Indian Rupee concluded at a historic closing low of 88.7875 per US Dollar, surpassing the prior record close of 88.76.

 

The intraday movement saw the Rupee weaken steadily, pressured by elevated demand for the US Dollar in global and domestic markets.

 

Market Drivers

 

Persistent foreign portfolio investors (FPIs) selling amid global interest rate uncertainties and geopolitical tensions.

 

Rising crude oil prices, increasing India’s import bill and negatively impacting the Rupee’s outlook.

 

Concerns over widening current account deficit and inflationary pressures in India.

 

Impact and Outlook

 

Importers and borrowers with US Dollar liabilities face higher costs, affecting corporate earnings and inflation trajectory.

 

The Reserve Bank of India (RBI) may consider intervention measures or adjustments to monetary policy to stabilize the currency.

 

Market analysts expect the Rupee to remain under pressure in the near term, with forecasts suggesting trading levels around 88.7 to 88.8 against the Dollar.

 

Government and RBI Statements

 

No immediate official comment on the currency move; RBI’s monetary policy review scheduled soon is widely awaited for clues.

 

Sources: Trading Economics, Wise Currency Converter Historical Data, NSE India Reference Rate Statistics