The Indian Rupee (INR) is currently facing significant downward pressure, recently reaching an all-time low of 88.62 against the US Dollar on September 23, 2025. This depreciation was primarily driven by increased US H-1B visa fees and a reduction in foreign equity inflows, which has raised concerns among investors about the overall economic stability in India.
In response to this volatility, the Reserve Bank of India (RBI) has taken measures to stabilize the rupee, expanding its short dollar forward positions by $6 billion in October 2025. Experts indicate that this intervention is a proactive step to counter the currency's persistent weakness. Despite these efforts, strong importer demand for dollars continues to exert pressure on the INR, as businesses hedge against potential fluctuations driven by shifting US tariffs and immigration policies.
A report released in early November 2025 highlighted additional challenges for the rupee, including weak manufacturing export growth and a diminishing policy rate differential with the US. Analysts suggest that these factors are likely to further strain the INR in the coming months, as foreign direct investment slows and economic growth remains subdued.
Recent exchange rate movements show that the INR to USD conversion rate stands at 0.011192, which is just 0.9% below its three-month average of 0.011298. The pair has exhibited stability, trading in a narrow range of 2.2% from 0.011156 to 0.011398. However, against the Euro and the British Pound, the INR is at 30-day lows, with current rates near 0.009648 and 0.008452, respectively. These rates are slightly below their three-month averages, highlighting ongoing weakness. Conversely, the INR to JPY rate is currently at 1.7478, above its three-month average of 1.71, indicating some relative strength in this pairing.
In summary, while the RBI's interventions may provide temporary relief, the outlook for the INR remains challenged due to structural economic issues and ongoing geopolitical factors. Stakeholders are encouraged to monitor these developments closely to navigate international transactions more effectively.
