The Indian rupee extended its decline to ₹91 per US dollar, down 0.3% on the day. Weighed by tariff concerns, strong dollar demand, and FPI outflows, the rupee has depreciated nearly 6% in 2025, making it one of the weakest emerging market currencies. Analysts expect continued volatility ahead.
Currency Weakness Deepens
The Indian rupee (INR) continued its downward slide, extending losses to hit ₹91 per US dollar, marking a 0.3% decline on the day. This fresh low reflects mounting global and domestic pressures, including strong dollar demand, foreign portfolio outflows, and trade-related concerns.
Key Highlights
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Exchange Rate: The rupee weakened to ₹91/USD, its weakest level on record.
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Daily Decline: The currency slipped 0.3% in Tuesday’s session, extending recent losses.
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Global Pressures: Tariff concerns from Washington and the absence of a US-India trade deal have weighed heavily on sentiment.
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Investor Outflows: Sustained foreign portfolio investor (FPI) withdrawals have added to the rupee’s weakness.
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Yearly Performance: The rupee has depreciated nearly 6% in 2025, ranking among the weaker emerging market currencies.
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Market Outlook: Analysts expect continued volatility, with the Reserve Bank of India likely to monitor developments closely.
Why It Matters
The rupee’s slide underscores the challenges India faces in balancing trade, capital flows, and currency stability. A weaker rupee raises import costs, impacts inflation, and tests investor confidence in emerging markets.
Sources: Business Today, GoodreturnsGoodreturns, PriceIndia