On 5th May 2026, the Indian Rupee (INR) breached the 95 mark against the US Dollar (USD), hitting a new all-time low. Over the last few months, the INR has been steadily hitting new lows against the USD. Since the start of the US–Iran War, the situation has only aggravated, with the INR hitting new lows more frequently. A depreciating Rupee hits the overall economy, companies, and even individuals. In this article, we will understand how the depreciating Rupee affects your personal finances.
How has the INR performed
In most years, the INR has depreciated by an average of 3-5% per year. However, in the last one year, the INR has depreciated by 10%, far more than the usual average.
Source: https://tradingeconomics.com/india/currency
The above chart shows how the INR has depreciated from around Rs. 85 (May 2025) to around Rs. 95 (May 2026) against the USD in the last 1 year.
