On December 3, the Indian rupee reached an all-time low against the U.S. dollar and stood at 90.19. It has declined six days in a row and lost 5.3 per cent this year, becoming the worst-performing currency in Asia in 2025.
The decline is fueled by a growing trade deficit, poor foreign investment and stalled U.S.-India trade negotiations. Foreign investors withdrew approximately 17 billion dollars from the Indian stock markets this year, and foreign direct investment and commercial borrowings are extremely low.
The Reserve Bank of India has intervened only slightly, which has added pressure. This raised costs for imports, fuel, electronics, edible oils, and dollar-linked education or loans. Analysts say the rupee may stay weak, hovering between 92 and 93 in the coming months.
Anyone with investments or dollar-linked expenses should watch the rupee closely.
