India’s rupee weakened significantly in 2025 due to global uncertainty, trade tensions, and weak capital inflows. It ended the year near record lows against the US dollar. Economists say the future path depends on trade outcomes, investor confidence, RBI actions, and global conditions.

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•  Rupee fell over 6% in 2025, weakest among major Asian currencies
•  Slipped close to the 90-per-dollar mark by year-end
•  Foreign investor outflows increased pressure on the currency
•  Global risk aversion and strong US dollar hurt emerging markets
•  Trade uncertainty and tariff risks added to depreciation fears
•  RBI intervened in forex markets to limit sharp volatility
•  Seasonal inflows may offer some support in early 2026
•  Analysts expect gradual weakening through mid-2026
•  Currency outlook linked to capital flows and policy stability