Rupee Hits Record Low: How It Impacts Your Kitchen, Budget, and Lifestyle

New Delhi: The Indian rupee has plummeted to its all-time low, raising concerns not just for economists but for households across the country. On Thursday, the currency showed slight recovery, closing at ₹89.89 per US dollar, up 26 paise from its record low the previous day when it first crossed ₹90 per dollar. This year, the rupee has been the worst-performing currency in Asia.

Impact on Household Budgets
The weakening rupee is affecting more than just the stock market or forex traders—it is directly straining household finances. Expenses such as fuel, EMIs, children’s tuition, and travel costs are rising sharply. Families with children studying abroad are particularly hard hit, with tuition fees rising by ₹5–10 lakh annually compared to 2023. For instance, a course costing $50,000, which previously amounted to ₹40 lakh, now requires ₹45 lakh.

Rising Inflation on Essentials
India imports nearly 90% of its oil, as well as electronics, edible oils, and other essential commodities. A weaker rupee makes imports more expensive, increasing the cost of living.

Effect on Savings and Loans
For an average family earning ₹1.5 lakh per month, higher EMIs on education loans may force them to dip into savings or cut back on essential household expenses. Students repaying foreign loans face a 12–13% higher burden, as the rupee falls against the dollar.

Travel and Small Businesses
Families planning overseas trips will face higher costs. A $2,000 trip that earlier cost ₹1.6 lakh now costs around ₹1.8 lakh. Small businesses importing goods or traveling abroad for work are also impacted, as rising costs reduce profit margins.

Reasons Behind the Fall
Three key factors have contributed to the rupee’s decline:

1. Higher US tariffs on Indian goods, which have shaken business confidence.
2. Capital outflows, with foreign investors withdrawing around $17 billion from Indian markets in 2025.
3. The Reserve Bank of India (RBI) allowing the rupee to adjust gradually rather than defending it aggressively.

Is This a Repeat of 2013?
Unlike 2013, when India faced a severe dollar shortage, the RBI today holds $690 billion in reserves. Experts say the current weakness is strategic, helping Indian exports remain competitive, especially after the US raised tariffs.

RBI’s Stance
The RBI is intervening where necessary but is no longer pursuing a “defend-at-all-costs” approach. A slightly weaker rupee is seen as beneficial for exporters in the current global trade scenario.