Rupee closes at all-time-low of 94.05 against US dollar:Value depreciates 36% since 2014

The Indian rupee closed at an all-time low of 94.05 against the US dollar on Wednesday, 25 March, 2026, pressured by sustained selling from foreign portfolio investors (FPIs) and heightened global trade tensions. The rupee has remained under stress since the beginning of 2026. In December 2025, it breached the 90-per-dollar mark for the first time. Within just 3 months of the new year, it has now breached the 94 mark, highlighting mounting pressure on the domestic currency. Relentless FPIs selling mounts pressure on rupee Foreign institutional investors sold equities worth ₹8,009.56 crore on a net basis on Tuesday, according to exchange data. Oil drops Brent crude, the global oil benchmark, was trading 5.45% lower at $99 per barrel in futures trade. Impact of rupee depreciation Benefits Drawbacks Depreciation makes imports and overseas education costlier A weaker rupee directly raises the cost of imports, impacting everything from crude oil to electronics. It also makes foreign travel and education significantly more expensive. How is currency value determined? When a currency loses value against the US dollar, it is referred to as currency depreciation. A country’s foreign exchange reserves play a crucial role in determining currency strength. These reserves are used for international trade and payments. If dollar reserves decline, the domestic currency weakens. If reserves increase, the currency strengthens. In simple terms, a balance between India’s dollar reserves and foreign demand for the rupee helps maintain currency stability. Any imbalance leads to volatility in the exchange rate.