The Indian Rupee (INR) has reached a record low of 90.42 per U.S. dollar, reflecting a significant 5% depreciation over the past year. Analysts attribute this decline to a combination of factors including a growing trade deficit, heightened tariffs imposed by the U.S., and substantial foreign investment outflows. Reports indicate that foreign investors have withdrawn nearly $17 billion from Indian equities in 2025, further intensifying the rupee's weakness.
Recent updates reveal that the Reserve Bank of India (RBI) is now allowing the rupee to depreciate rather than intervening to maintain a specific exchange rate. This policy shift comes as the central bank prioritizes the reduction of excessive volatility over defending the currency against the backdrop of dwindling dollar inflows. Experts suggest that without a swift resolution to trade negotiations with the U.S., the rupee could fall to as low as 92 against the dollar.
In terms of key INR currency pairs, the exchange rate against the U.S. dollar is currently at 0.011090, which is 1.6% below its three-month average of 0.011273. It has maintained a stable trading range between 0.011090 and 0.011398. Similarly, the INR to EUR rate stands at 0.009530, also 1.6% below its three-month average of 0.009684, while the INR to GBP is at 0.008325, within the same percentage margin relative to its three-month average. The INR to JPY, however, shows slight strength, trading at 1.7285, just 0.7% above its three-month average.
Given these developments, businesses and individuals engaging in international transactions should closely monitor the RBI’s policy adjustments and potential shifts in trade relations, as these will likely continue to influence the performance of the INR in the near term.
