Indian Rupee Under Bearish Pressure Due to Trade War Fears

A recent Reuters survey indicates that the Indian rupee is now the most shorted among Asian currencies. Investors are holding bearish positions on the rupee as a result of rising global trade tensions and fears of slowing domestic economic growth. The currency has already lost 1.8% against the US dollar during the first two months of 2025, more than its total decline in 2023. The Reserve Bank of India's transition towards a more liberal exchange rate policy by new Governor Sanjay Malhotra has also added to the rupee's weakness. The rupee is expected to further depreciate, with predictions placing the rupee at 88.30 per dollar in February 2026.
Source: Reuters