The Indian Rupee (INR) is currently facing significant challenges, having recently reached a record low against the US dollar. As of September 23, 2025, the exchange rate hit 88.62 per USD, a reflection of increased H-1B visa fees and a decline in foreign equity inflows. Analysts attribute these pressures to a combination of rising costs for expatriates and reduced attractiveness for overseas investments.
In response to the rupee's depreciation, the Reserve Bank of India (RBI) intervened by expanding its short dollar forward positions by $6 billion in October 2025. This move has been interpreted as an effort to stabilize the currency amid persistent demand for dollars from importers, who are likely hedging against uncertainties surrounding US trade policies and tariffs.
Furthermore, economic reports indicate that slowing foreign direct investment and weak manufacturing export growth are exacerbating the situation. The narrowing policy rate differential with the US is adding another layer of pressure, leading experts to suggest that the INR may continue to face headwinds in the near term.
Current exchange rate performance showcases the INR at 90-day lows against the USD, trading near 0.011158, which is approximately 1.4% below its three-month average. The INR is similarly positioned against the Euro at 0.009690, close to its three-month average but at seven-day lows. Meanwhile, against the pound, the INR is trading at 0.008516, slightly above its three-month average. In contrast, the rupee shows relative strength against the yen, trading at 1.7450, which is 2.4% above its three-month average.
Given the ongoing economic challenges and recent currency trends, individuals and businesses engaged in international transactions should stay informed and consider potential hedging strategies to mitigate exchange rate risks.
