New Delhi: Following the recent developments in the economy, the Indian Rupee has weakened further against the US dollar, sliding to an all-time low to ₹89.76 this year. The 4% overall decline has been due to consistent foreign capital outlflows, strong import demand for crude, commodities and capital goods that has affected the value of the Rupee.
On top of that, higher costs of imported inputs, including in sectors like electronics, chemicals and oil and gas, have seen increased costs further affecting the Rupee. Besides that, an increase in demand for US Dollars has also played its part.
“The Indian Rupee continued its downward trend, depreciating for the fourth straight session to hit a record low against the US Dollar. This significant decline is fuelled by strong market demand for the dollar coupled with constrained supply. The sustained weakness is primarily attributable to a widening trade deficit, the delayed India-US trade deal, and limited intervention from the central bank.
“The outlook for the rupee to remain under pressure versus the US dollar for the coming days, as the underlying imbalance between demand and supply for the US Dollar is likely to persist. In the near term, spot USDINR has resistance at 89.95 and support at 89.30,” Dilip Parmar, Senior Research Analyst, at HDFC Securities, told MoneyControl.
Analysts fear that the rupee could break past 90 if the India-US trade deal remains stuck. This would be India’s biggest currency decline since 2022, following the Russia-Ukraine war that sent global oil prices past $100 a barrel, a major shock for crude-import-dependent countries like India.
This, the slide has been driven by political factors-US tariffs in particular, as well as almost ₹79k crore ($9.28 billion) of outflows by foreign investors in 2025.
