New Delhi 8 Sep 2025: Finance Minister Nirmala Sitharaman recently responded to the weakening position of the rupee. She clarified that the government is closely monitoring the decline of the rupee. She pointed out that the rupee’s weakness is not only against the US dollar, but many other global currencies have also weakened against the dollar.
In an interview, Sitharaman said that the strength of the dollar is being widely felt in global markets, so it is natural that not just the rupee but several currencies are weakening against it. She also emphasized that the government is fully aware of this situation and necessary steps are being taken.
Rupee’s fall against the dollar and RBI intervention
Last Friday, the rupee fell to an all-time low of 88.38 against the US dollar during the day. However, by the end of the day, it closed at 88.09. The main reason behind this fall is considered to be the heavy import tariffs imposed by the US, which has created unease among investors and traders. The Reserve Bank of India (RBI) intervened in the market to stabilize the rupee, which provided some relief.
Impact of America’s 50% import duty
Since August 27, the US has imposed import duties of up to 50% on several items imported from India, one of the highest globally. This also includes a 25% penalty on crude oil purchases from Russia. As a result, India’s key export sectors such as textiles, garments, gems and jewelry, shrimp, leather, footwear, animal products, chemicals, and electrical & mechanical machinery are expected to be impacted. However, crucial sectors like pharma, energy products, and electronics have been kept outside the scope of this import duty.
Major figure of India-US trade
In the financial year 2024–25, about 20% of India’s total merchandise exports went to the US, amounting to around $437.42 billion. This is why the US import duty is likely to have a significant impact on the Indian economy.
Summary: The Indian rupee weakened further against the U.S. dollar, prompting the government to release a statement addressing currency concerns, economic stability, and ongoing financial measures.