Shocker Of The Day: INR Hits All Time Low Against US Dollar

In what could be considered the biggest shocker of the day, the Indian rupee hit an all-time low when compared to the United States dollar and here is a look into the trading story that unfold today.

The Indian rupee hit an all-time low against the U.S. dollar, creating concern across financial markets and households alike. On August 29, 2025, the rupee briefly dropped to 88.3075 per dollar during intra-day trading, before closing at 88.19, marking its weakest level ever.

The sharp fall was triggered mainly by global uncertainties, including steep U.S. tariffs, stronger demand for the dollar, and foreign investors pulling out funds from emerging markets like India.

With the U.S. Federal Reserve keeping interest rates high, investors continue to prefer the safety of the dollar, adding pressure on the rupee. This depreciation has a direct impact on India’s import-heavy economy.

Since India relies heavily on crude oil, the fall in the rupee makes imports more expensive, which in turn raises fuel costs and pushes inflation higher. Industries dependent on imported raw materials, such as electronics and pharmaceuticals, also face rising costs.

While exporters, especially in IT and textiles, may benefit from higher dollar earnings, ordinary citizens are hit with costlier foreign education, overseas travel, and imported goods. There is the desperate need for the Indian rupee to gain ground over the United States dollar, and it needs to be happening very quickly as well.