The free fall in rupee’s relative value against the US dollar may have its advantages. Particularly, exporters hit with a debilitating 50% tariff by US President Donald Trump may see some of the pain offset by the additional dollars received for each rupee’s worth of goods sent abroad.

The rupee is down 3.6% since the start of 2025 and over 6% in the last one year. Notably, in Nov 2024, the Indian rupee was considered overvalued. Therefore, some of the fall was due.

While exporters may see some benefit, equity markets may have to wait longer for the return of foreign investments. They will wait for the rupee to find a floor before making new bets because they make more money when the rupee is on a gaining trajectory.

A profit of say, ₹1,000 crore— $112 million at current exchange ra

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