The Indian rupee fell to a new record low on Monday, creating fresh worries for the country’s economy. The currency slipped to ₹88.33 against the US dollar during the day, breaking the earlier record of ₹88.30 that was touched just last Friday.

Experts said the fall happened mainly because importers (companies that buy goods from outside India) rushed to hedge their payments, and many traders in the market placed speculative bets expecting the rupee to weaken further.

Adding to this pressure, the United States recently raised tariffs (extra taxes) on some Indian goods. This move has increased concerns about India’s trade balance and its financial health. Investors believe higher tariffs could reduce India’s exports while raising costs for imports, making the rupee more vulnerable.

The mood in the market also turned sour after US Treasury Secretary Scott Bessent made dismissive comments about the Indian rupee. When asked in an interview whether the rupee could challenge the US dollar as a global currency, Bessent replied, “There are a lot of things I worry about. The rupee becoming a reserve currency is not one of them.” His remarks added to the negative sentiment around the rupee.

Market analysts explained that the pressure on the currency is part of a continuing trend. Jateen Trivedi, Vice President and Research Analyst at LKP Securities, said that the US tariffs have raised fears of a bigger trade and fiscal deficit for India. He added that while some support may come from the upcoming GST Council meeting, traders are waiting to see the final decisions on GST changes before reacting strongly.

For now, the rupee is expected to trade in a range between ₹87.65 and ₹88.45. Experts suggest that unless there is positive news on trade or fiscal policies, the rupee may remain weak in the coming days. This record fall of the rupee not only highlights the global challenges India faces but also shows how sensitive the currency is to international events and market sentiment.