INR against the US dollar: Why does the strongest dollar not mean that the rupee fell in the same percentage.

Samir Aroura, director of expert funds and market warriors, intervened to clarify a widespread wrong idea on how to properly calculate the value of Indian Ruphric (INR) in exchange for the US dollar estimate (USD). His interpretation comes at a time when the rupee is under great pressure, as it fell to the lowest new standard against the dollar amid trade tensions with the United States.

Arora, the founder and director of funds at Helios Capital, used social media to explain that the main headlines often state that the dollar has been estimated at a certain percentage against rupees, but this does not mean that the rupee has decreased to the same percentage. The difference arises from how to quote the currency values ​​and how consumption should already be measured.

“If INR goes from 1 = 61 to 1 = 88 USD, the dollar was 44 % estimate. This does not mean that the rupee has decreased by 44 %. In fact, the rupee decreased by 30.6 % with these numbers,” Arora wrote on X. “It was not good in any case, but I am talking about it.”

To facilitate its understanding, it gave a circular clarification. If the exchange rate is twice from $ 50 per dollar to $ 100 per dollar, the value of the dollar appears to be doubled – 100 % estimate. But for a person with $ 100, the image looks completely different. Earlier, it will bring $ 100 $ 2, while now buys $ 1. In other words, the strength of the rupee in dollars has decreased in half – a decrease of 50 %, not 100 %.

Arura stressed that looking at her from the perspective of rupees provides a clearer picture of ordinary investors and citizens. Although the 100 % USD optics may seem worrying, the actual strike to the rupee value is different and must be measured properly.

His clarification was in response to the wealth expert, Sherfastava, who was previously published about the decline in the rupee. Shrivastava indicated that ten years ago, the rupee was in $ 61 of the dollar and is now approaching 88 – describing it by 44 % compared to the US dollar. Ask the broader question about the reason for the loss of currencies at all.

Shrivastava explained that the balance of demand for the currency determines its level. The offer is controlled by the government, which decides the amount of printing. Print a lot of currency risks to supply inflation and value erosion. However, the demand is moved by the market-determined by commercial flows, investment and confidence in the economy. When the demand is weakened for the supply, the currency is located.

The Orra’s Point completes this, which confirms that the decrease in the value of the rupees should be evaluated from the number of dollars that one can buy in the same rupees, rather than just reflecting the percentage of the percentage of the dollar.

The timing of the discussion is important. Indian rupee decreased by 0.4 % to 87.9763 per dollar this week, which violated the lowest level ever at 87.9563 in February. With this decline, the rupee became the worst currency in Asia in 2025, which was beaten due to continuous external flows and external shocks.

The direct trigger was to impose 50 % mutual definitions on Indian exports, targeting intensive industries in employment such as textiles, shoes and jewelry. These sectors constitute a large share of India’s shipments to the United States, and analysts fear a sharp decrease in requests. Citigroup Inc. The customs tariff can fly 0.6-0.8 percentage points of annual GDP growth in India, which is meaningful to the economy.

Adding fuel to feelings, US Treasury Secretary Scott Besent made statements rejecting international rupee horizons. In an interview with Fox News, he said: “There are a lot of things that I am concerned.

Bessent stressed that the rupee is near “its lowest level ever”, which confirms the dominance of the dollar in world trade. His comments followed the escalation of the Trump administration tariff, which many see as a direct challenge to India’s commercial competitiveness. Indian acute products will make much more expensive for American consumers, which already harms exporters with margin pressures.

The double blow to the pressure of customs tariffs and the weakness of the currency led to the revival of the debate about India’s external weaknesses. For investors, Arora’s clarification may not reduce immediate market pain, but it highlights the importance of properly interpreting numbers. Currency movements affect everything from inflation expectations to foreign investment flows, and the exaggeration of consumption can distort the narration.

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