Rupee Hits Record Low ₹88.33/$ as RBI Steps In, Forex Reserves Drop $4.38 Billion

The Indian rupee dropped to a new all-time low of ₹88.33 per US dollar on Monday as rising dollar demand, foreign money outflows, and weak exports put pressure on the currency.

Rupee Weak in Recent Sessions

The rupee has lost value in six of the last eight trading sessions, falling nearly 1% in this period. Experts say strong demand for dollars from importers and traders has added to the weakness.

Foreign Investors Pull Out Money

Foreign investors have been selling Indian shares in large amounts during August, moving their money out of the country. This increases demand for dollars and pushes the rupee lower.

Slow Exports Add to Pressure

India’s exports have slowed down due to global trade troubles and new tariffs. Economists warn this could increase the current account gap (CAD), making the rupee even weaker.

RBI Steps In, Reserves Fall

The Reserve Bank of India (RBI) has been selling dollars through state-run banks to stop the rupee from falling too fast. Official data shows India’s foreign exchange reserves fell by $4.38 billion to $690.72 billion in the week ending August 22.

What Lies Ahead

With the rupee at a record low, markets will keep a close watch on RBI moves, foreign investor activity, and trade numbers. A weaker rupee could raise import costs, push up inflation, and keep stock and bond markets unstable.

Source: RBI weekly data, Reuters, Economic Times, Business Standard