Rupee sees a rocky year, is Asia's worst performer

THE RUPEE WITNESSED a volatile 2025, depreciating by around 5% during the yearthe biggest decline in three years.

- CHRISTINA TITUS

It also remained Asia's worst-performing currency.Since the Trump administration took charge in the US in January, the rupee has remained weak, dragged down by concerns over steep trade tariffs. The subsequent geopolitical tensions, such as the Russia-Ukraine war and the Israel-Iran conflict, along with India-Pakistan tensions, added to the headwinds.

Besides coming under pressure due to the 50% tariffs imposed on Indian goods by US President Donald Trump, the rupee also witnessed the shocks from the H-1B visa fee hike, consistent foreign outflows and higher gold prices.

Opening the year at 85.65, the rupee saw a steady depreciation to hit 87.4 levels around the beginning of March, thereafter recovering to around 84 in May. However, the punitive tariff by the US pulled it even lower, with the local currency plunging to the psychological level of 90 on December 3. During the year, it hit multiple record lows due to the absence of a trade deal with the US, and continuous foreign outflows. The Reserve Bank of India (RBI) intervened multiple times to support the rupee.

On Tuesday, the currency rose 0.21% to close at 89.79.