Today the rupee has fallen for the ninth consecutive session. The rupee fell 0.3 percent against the dollar today. Due to this, the rupee opened at 96.86 and fell by 41 paise to 96.96 in early trade. The day is not far when the rupee will touch the level of 97. Everyone has suffered losses due to this decline. As a direct result of this decline, the rupee has emerged as the weakest currency today.
Why is the rupee continuously falling?
Foreign institutional investors (FIIs) have been steadily pulling out their capital from the Indian market, a trend that is causing the rupee to weaken. In addition, India imports crude oil to meet its domestic needs; Given the current geopolitical situation, the country is having to spend more dollars to pay for these imports.
worst performing currency
In 2026, the rupee has become the weakest and worst performing currency in Asia. It has fallen 1.5 percent so far this month, taking the decline to more than 7 percent in the entire year. Forex traders and experts say the rupee remains volatile due to rising crude oil prices and possible disruptions in exports and imports from Gulf countries due to the closure of the Strait of Hormuz.
How is the import sector being adversely affected?
Due to the ongoing tension between America and Iran, crude oil prices are continuously increasing. This trend is weakening the rupee and increasing India’s import bill. Additionally, the risk of widening of the current account deficit (CAD) has also increased. Economists estimate that India’s current account deficit may increase significantly in the current financial year. Additionally, concerns over the potential impact on remittances from the Middle East – as well as growing apprehensions about India’s economic growth path – are putting additional pressure on foreign investment flows.
