The Indian rupee had tumbled to a low of 90.02 against the US dollar.
It’s the lowest the local currency has ever touched. In 2025 alone, the rupee has lost around 5 per cent against the dollar, making it one of Asia’s worst-performing currencies this year.
At the time of this article going live, the rupee stood at 90.43.
Experts told a section of the media that multiple economic pressures are bearing down hard on the rupee.
India’s merchandise trade deficit reportedly hit a record USD 41.68 billion in October, up from USD 32.15 billion in September. Exports fell nearly 12 per cent to USD 34.38 billion, while imports jumped 17 per cent to USD 76.06 billion, largely driven by gold and silver purchases.
The growing gap between imports and exports has pushed dollar demand higher, putting the rupee under intense pressure, industry observers noted.
The lack of a formal trade deal with the US is adding fuel to the fire. High US tariffs have slowed trade, hit manufacturing, and dragged down exports.
Exports to the US fell nearly 9 per cent because of 50 per cent punitive duties, and India’s manufacturing growth slumped to a nine-month low in November, according to an HSBC survey, cited by a media outlet. Analysts say a trade deal could have eased some pressure on the currency.
Foreign portfolio investors (FPIs) have also been selling Indian shares relentlessly. In 2025 alone, FPIs have offloaded shares worth Rs 1,47,164 crore (USD 16.78 billion). These outflows reduce dollar inflows, further weakening the rupee and piling on the impact of trade and economic challenges.
A widening trade gap, delayed negotiations, and relentless foreign selling continue to push the rupee toward historic lows, leaving policymakers and investors watching nervously.
Also Read: Rupee Hits Record Low of 84.37 Against US Dollar As Trump Claims Victory https://www.vibesofindia.com/rupee-hits-record-low-of-84-37-against-us-dollar-as-trump-claims-victory/
