Rupee slips to all-time low of 88.75 against US dollar! Exporters cheer short term gains; importers face rising costs

The Indian rupee slipped to a record low of 88.75 against the US dollar on Tuesday, a fall of 47 paise that exporters said will improve price competitiveness in global markets, even as they flagged risks from volatility and higher import costs.Import-heavy sectors such as gems and jewellery, petroleum and electronics may derive limited benefit from the depreciation due to costlier inputs, according to industry representatives, PTI reported.“The depreciation will definitely help exporters in the short run. But we need stability in the value against the USD,” Federation of Indian Export Organisations (FIEO) President S C Ralhan said.Mumbai-based exporter and Technocraft Industries Ltd Founder Chairman S K Saraf said the weaker currency would bring relief at a time when Indian goods face tariff pressures in the US.

“Our hardships will get mitigated to a certain extent. I expect that the rupee will reach 100 per dollar in the next 4-5 months. I think 100 will be the new normal,” Saraf said.Traders, however, cautioned that imports ranging from crude oil to electronics, foreign education and overseas travel would turn costlier. India depends on imports for 85 per cent of its oil needs, including petrol, diesel and jet fuel. The country’s import basket also includes coal, chemicals, plastics, vegetable oil, fertiliser, machinery, gold, pearls, precious stones, and steel.

Kanpur-based Growmore International Ltd MD Yadvendra Singh Sachan said volatility hurts both sides of the trade. “Any volatility in the value is not good for both,” he noted.India’s merchandise exports rose 6.72 per cent to $35.1 billion in August. During April-August 2025-26, exports increased to $184.13 billion, while imports grew 2.13 per cent to $306.52 billion.