The Indian Rupee (INR) continues to face considerable pressure as of October 2025, primarily due to ongoing trade tensions with the United States. The INR has depreciated for the fifth consecutive month, reaching a record low of 88.8000 against the US dollar. This decline can be attributed to a combination of U.S. tariffs on Indian exports and increased H-1B visa fees, which are adversely affecting India's economic landscape.
Analysts suggest that the Reserve Bank of India's (RBI) recent proposals to enhance the international usage of the rupee, including allowing banks to issue rupee-denominated loans to neighboring countries, could provide some support. Moreover, with the RBI's upcoming policy meeting, some experts speculate that a potential interest rate cut may be on the table to bolster economic growth, although most forecasts predict rates will hold steady at 5.50%.
In terms of specific currency pairs, the INR to USD is currently at 90-day lows, trading around 0.011253, which is 1.4% below its three-month average of 0.011411. Stability in trading is reflected in a narrow range of 0.011253 to 0.011665. Conversely, the INR has experienced positive movements against the Euro and the pound, reaching 30-day highs near 0.009730 and 0.008459, respectively, just marginally below their three-month averages. The INR to JPY is also performing well, trading at 60-day highs near 1.7227, which is 1.9% above its three-month average.
Geopolitical tensions continue to play a significant role in currency stability, especially with heightened pressures from U.S. policy changes, further complicating the outlook for the rupee. For individuals and businesses engaged in international transactions, monitoring these developments will be crucial to navigating currency fluctuations effectively.
