Rupee in Crisis: Rupee Nosedives on April 8 – Second Biggest Fall of 2025 So Far
For the first time since January 13, the Indian rupee witnessed a sharp decline on April 8.
According to data, this marks the second biggest fall of 2025 against the US dollar.
In just three trading days, the rupee has plunged by 96 paise, raising concerns among investors and traders.
Let’s take a look at the new levels the rupee has hit — and the major reasons behind this steep fall.
Rupee in Crisis: POTUS Tariff Strike Sends Rupee Crashing – Biggest Drop in 85 Days
U.S. President Donald Trump’s aggressive tariff policies have clearly rattled the Indian currency market.
The rupee has now fallen for three consecutive days, but the situation worsened significantly on Tuesday.
It marked the biggest single-day drop in 85 days, with the rupee plunging to its weakest level against the dollar since January 13.
According to currency market data, the rupee closed 50 paise lower against the U.S. dollar on the third day.
Amid growing fears of a global trade war and looming economic slowdown, this is being seen as the most significant single-day fall in nearly three months.
Rupee in Crisis: Double Pressure on Rupee as Global Tensions and Capital Outflows Intensify Volatility
According to forex traders, a slight recovery in crude oil prices and the continuous outflow of foreign capital have weakened investor sentiment.
Adding to the pressure, the U.S. administration has issued a strong warning to China — stating that if China imposes a 34% import duty on American goods, the U.S. will respond with a punitive tariff of 50%.
This statement has triggered heightened volatility in global markets, which is now spilling over into the Indian currency and equity markets.
Let’s take a closer look at how this instability is impacting the Sensex and the currency market.
On Monday, the rupee had already weakened by 32 paise to close at 85.76, while on Friday, it had dropped by 14 paise.
This means the rupee has declined a total of 96 paise over the last three trading sessions, a clear sign of mounting pressure in the currency markets.
Rupee in Crisis: Biggest Rupee Fall in 85 Days – Down 96 Paise in Just Three Sessions
In the interbank foreign exchange market on Tuesday, the rupee opened at 85.89 and fluctuated between an intra-day high of 85.82 and a low of 86.29 against the U.S. dollar.
It finally closed at 86.26 (provisional), registering a 50 paise loss compared to the previous close.
The last time such a steep single-day fall was recorded was on January 13, 2025, when the rupee had dropped 66 paise in one session — the biggest of the year.
On Monday, the rupee had already weakened by 32 paise to close at 85.76, while on Friday, it had dropped by 14 paise.
This means the rupee has declined a total of 96 paise over the last three trading sessions, a clear sign of mounting pressure in the currency markets.
Rupee Hits Two-and-a-Half Week Low – Becomes Asia’s Worst-Performing Currency
According to HDFC Securities Research Analyst Dilip Parmar, the decline in the Indian rupee against the U.S. dollar is primarily due to strong dollar demand from importers and the continued outflow of foreign capital from Indian equity markets.
As a result, the rupee has emerged as the worst-performing Asian currency in April.
Market sentiment remains bearish for the rupee, especially after the U.S. announced reciprocal tariffs, which pushed the currency to its lowest level since March 21.
On the domestic front, investors are now awaiting the RBI’s upcoming policy rate decision.
The Monetary Policy Committee (MPC) of the Reserve Bank of India, chaired by Governor Sanjay Malhotra, began its three-day deliberation on Monday, with the final announcement scheduled for Wednesday.
Rupee in Crisis: Dollar Index Gains, Markets Rebound Sharply
The U.S. Dollar Index, which measures the greenback’s strength against a basket of six major currencies, rose 0.06% to 103.03.
Meanwhile, Brent crude oil prices also saw a slight recovery in futures trading, climbing 0.19% to $64.33 per barrel.
On the domestic front, Indian stock markets staged a strong rebound on Tuesday.
The BSE Sensex surged 1,089.18 points (1.49%) to close at 74,227.08, while the Nifty 50 jumped 374.25 points (1.69%) to settle at 22,535.90.
This sharp recovery followed Monday’s steep decline, where both benchmark indices fell over 5% intraday and eventually closed down by around 3%.
Rupee in Crisis: According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth ₹9,040.01 crore on a net basis on Monday — a major contributor to the previous day’s sell-off.
