Rupee at all time low against dollar, Gold-Silver at all time high

The Indian rupee has fallen to a historic low, trading at 88.29 against the U.S. dollar for the first time. The drop was triggered by new U.S. tariffs of an additional 25% on Indian goods, bringing the total duty to 50%. The Reserve Bank of India (RBI) intervened by selling dollars, which helped the currency recover slightly to 88.12. This decline makes the rupee Asia's worst-performing currency in 2025, having fallen by 3% this year. The tariffs are expected to significantly impact India's economy, potentially reducing GDP growth by 60–80 basis points over a year, with the textile and jewellery sectors being hit the hardest.

In addition to the tariffs, the rupee's decline is also being fueled by weak foreign investment, with investors pulling nearly $10 billion from Indian markets this year. This has put further pressure on India’s balance of payments. Analysts are concerned that if the rupee falls past 89, it could trigger a more rapid decline, worsening the country's trade deficit and growth prospects.

Gold and silver prices reached new all-time highs for the second day in a row. According to the India Bullion and Jewellers Association, the price of 24-carat gold increased by ₹583 to ₹1,02,089 per 10 grams. The price of silver also rose significantly, climbing by ₹146 to ₹1,17,256 per kilogram. The prices for 24-carat gold varied slightly across major cities, with Delhi seeing a price of ₹1,02,750 per 10 grams.

Market analysts predict that the rally in gold and silver will continue throughout the year, driven by ongoing geopolitical tensions and high investment demand. Forecasts suggest gold could reach ₹1,04,000 per 10 grams, while silver may climb to between ₹1.30 lakh and ₹1.46 lakh per kilogram. Experts advise buyers to look for BIS-hallmarked gold with a 6-digit HUID code to confirm purity. They also note that while 24-carat is the purest form of gold, jewelry is more commonly made from 22-carat or lower for greater durability.