The rupee opened weak in the morning at ₹96.19 and slipped further to ₹96.25 as the day went on. This is a drop of 44 paise from the previous day’s closing rate. Why did this happen?
On Monday, 18th May, the Indian rupee touched its weakest ever level against the US dollar, falling to ₹96.25 in early trading. In simple words, this means that to buy just 1 US dollar, an Indian person now has to pay ₹96.25, which is the highest amount ever in our country’s history.
The rupee opened weak in the morning at ₹96.19 and slipped further to ₹96.25 as the day went on. This is a drop of 44 paise from the previous day’s closing rate. Why did this happen? Three main reasons: crude oil prices are going up globally, there is a lot of uncertainty across many parts of the world, and the US dollar has become very strong recently.
Speaking on this serious matter, well-known economist Kaushik Basu gave an important warning. He said people should not blame only the war for this fall. According to him, this is a serious economic problem and not the right time for political fights and blame games. He clearly mentioned that the rupee has weakened by 11.2% against the US dollar in just the last year, which is a very big drop for any country’s currency.
As reported by Business Today, Basu also pointed out something very worrying — foreign investment coming into India has been almost zero for the last 22 months. This means big companies and investors from other countries are not putting their money into our economy like before. If this situation is not controlled soon, he warned, it could push up inflation, meaning everyday items like vegetables, oil, and groceries could become costlier for ordinary families.
Now, you must have heard the number 99.32 in the news and wondered if it is in rupees. Please note, it is not money at all. It is called the Dollar Index (DXY), which simply shows how strong the US dollar is compared to six major world currencies like the euro, yen, and British pound. When this index goes up, it means the dollar is becoming stronger globally. So, ₹96.25 is the exchange rate you pay to buy 1 dollar, while 99.32 is just a strength score of the dollar — they are two completely different things.
Currency expert Anil Kumar Bhansali shared his views too. He said only two things can save the rupee right now: first, the war should end, and second, the Strait of Hormuz (a very important sea route through which oil ships travel around the world) should reopen properly. If this does not happen and the Reserve Bank of India does not take strong steps to bring more dollars into the country, the rupee may even touch ₹100 per dollar in the coming days, which would be a shocking moment.
But there is some good news also. A report by BMI, a global research company, has predicted that the rupee will not keep falling forever. It is expected to stay mostly stable and end the year 2026 at around ₹95 per dollar. So while things look difficult today, the situation may improve slowly over time.
For a common Indian family, a weak rupee means imported items like petrol, diesel, mobile phones, foreign medicines, and even cooking oil could become costlier. This is exactly the time when the government must focus on strong economic policies rather than political debates, so that the aam aadmi does not suffer because of rising prices in daily life.
Published: 19 May 2026, 12:56 pm IST
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