The Indian rupee tumbled to a record low of 90.13 against the US dollar on Wednesday. It broke the previous day's record of 89.9475 and continued the downward trend for the fifth straight session.
The fall came amid weak trade and portfolio flows, persistent importer demand, and uncertainty surrounding the India-US trade deal.
Market Impact
The sharp slide weighed immediately on domestic markets.
- Nifty slipped below 26,000.
- Sensex fell nearly 200 points in early trade as investors grew wary of inflation risks and the possibility of continued foreign institutional investor (FII) outflows.
The RBI, which had been intervening actively earlier, appeared to allow more currency flexibility in recent weeks, adding to market anxiety.
Why The Rupee Is Falling
- Sustained importer dollar demand.
- Weak capital flows and soft foreign portfolio investor activity.
- Speculative positioning and short-covering.
- Uncertainty over the India-US trade deal.
- Pressure from broader Asian currency weakness.
What A Weaker Rupee Means
A depreciating rupee makes imports costlier. From crude oil to electronics, costs will potentially feed inflation. It also impacts sectors dependent on foreign currency payments, including aviation, automobiles, and pharmaceuticals. One of the biggest silent casualties is education abroad.
How The Falling Rupee Affects Students Studying Overseas
More than 7.6 lakh Indian students moved abroad for higher education in 2024. With the rupee weakening from around Rs 84 in early 2025 to over Rs 90 now, nearly a 7 per cent slide, the cost of studying overseas has surged.
Higher education is treated globally as an exported service, meaning every aspect of studying abroad, tuition, accommodation, visas, consultancy, and day-to-day expenses, becomes more expensive when the home currency weakens.
The Impact
- Tuition fees rise by lakhs.
- Living expenses shoot up.
- Education loans balloon, with borrowers repaying more in rupee terms.
- Families supporting students abroad face heavier monthly remittances.
Students in the US feel the steepest pinch, but those in the UK, Canada, Australia, and Eurozone countries are also hit. Only countries with tightly managed currencies, like Singapore, offer marginal relief.
A decisive RBI intervention could halt the slide.
