ADVERTISEMENT
The Indian rupee depreciated to a historic low of 83 per US dollar today for the first time on rising US treasury yields, which pushed the rupee further down. The domestic currency opened at 82.29 against the greenback but fell further to 83.02 during the day, a record low of 66 paise or 0.8% from the previous close. Overall, the domestic currency has depreciated more than 11% against the US dollar so far this year. Before this, the local currency had hit an all-time low of 82.69 against the USD on October 10.
The reason behind the rupee's slide against the US dollar is believed to be a demand boost for the US dollar by some public sector oil importers, pushing the rupee down against the greenback. The benchmark Indian 10-year government bond yield, which had fallen to 7.3% earlier today, ended at 7.4510%. It had ended at 7.4261% during the previous close.
August 2025
As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.
With a sudden plunge of the rupee against the US dollar, India's equity markets have also shown a similar trend. The equity benchmark Sensex fell from the day's high of 59,374.82 to close in the green at 59,107.19, while Nifty 50 slipped below 17,500 from the day's high of 17601.35 and later closed in the green at 17,512.25.
The latest historic slide in the rupee comes after finance minister Nirmala Sitharaman, during her six-day visit to the US last week, said the Indian rupee had withstood the sharp strengthening of the US dollar and performed much better than many other emerging market currencies. She said the Reserve Bank of India (RBI) was working to contain the rupee’s volatility and that the rupee will find its own level.
"Dollar is strengthening incessantly. So obviously, all other currencies are performing against the strengthening dollar. I am not talking about technicalities but it is a matter of fact India's rupee probably has withstood this dollar rate going up,” a news agency quoted the FM as saying. She added the fundamentals of the Indian economy are good. "The foreign exchange reserve is good. This is what I keep repeating that inflation is also at a manageable level,” she adds.
Not only the rupee but the US dollar has strengthened against other major currencies as well. After the data coming out from the UK showed inflation rising to a 40-year high of 10.1% in September, it raised the possibility of the Bank of England raising key interest rates further. With this, British Pound Sterling has weakened by 0.6% against the US dollar.
The recent depreciation of the rupee against the US dollar has contributed to higher inflation in India, forcing the major global bodies like the World Bank and the International Monetary Fund (IMF) to downgrade India’s GDP growth forecast for FY23. In fact, India's retail inflation spiked 7.41% in September, at the fastest pace in five months. The currency instability gives a rise to higher inflation as imports become more costly. This also means the central bank will have to keep rising key lending interest rates.
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.