Indian Rupee Hits Record Low of 92 Against US Dollar: What It Means for Economy

• The Indian Rupee plunged to a record low of 92.00 against the US Dollar due to a stronger Dollar and weakening Asian currencies.
• The Dollar's recovery was fueled by the US Federal Reserve's stance on persistent inflation and a stabilizing labor market, leading to rising US Treasury yields.
• Weak capital inflows and market concerns are contributing to the Rupee's depreciation, with traders anticipating potential RBI intervention.
• A weaker Rupee makes imports like crude oil, electronics, and overseas education more expensive, increasing inflationary pressure.
• Conversely, it benefits NRIs sending remittances and exporters, though those reliant on imported inputs may see reduced margins.

Why It Matters: The Rupee's record low of 92 against the Dollar signals economic challenges, making imports costlier while boosting exports.