The Indian Rupee (INR) has experienced significant pressure recently, reaching a historic low of 88.62 against the US Dollar on September 23, 2025. This decline was largely attributed to increased US H-1B visa fees and a decrease in foreign equity inflows. Analysts indicate that these factors, combined with ongoing geopolitical uncertainties, have contributed to the rupee's challenges.
In response to this situation, the Reserve Bank of India (RBI) has taken active measures to stabilize the currency, expanding its short dollar forward positions by $6 billion in October. Despite these interventions, the INR remains under pressure from strong importer demand for dollars and prevailing concerns regarding US tariffs and immigration policies.
Recent economic reports highlighted that weak manufacturing exports and a narrowing policy rate differential with the US further exacerbate the rupee's situation. As per observers, the ongoing sluggishness in foreign direct investment and manufacturing growth keeps the INR vulnerable in the current market climate.
Regarding recent exchange rate fluctuations, the INR to USD is at 30-day lows near 0.011259, slightly below its 3-month average of 0.011332, with trading having remained stable within a narrow 2.1% range. In comparison, the INR to EUR is currently at 0.009686, just below its 3-month average, while the INR to GBP stands at 0.008562—1.2% above its 3-month average. Noteworthy is the INR to JPY, which is positioned at 1.7425, 2.6% above its 3-month average, showcasing relative strength amidst overall rupee weaknesses.
Moving forward, experts advise caution as the INR navigates these turbulent waters. Observing market trends closely could assist individuals and businesses in making well-informed decisions regarding international transactions and currency exchanges.
