PRESSURE ON RUPEE TO CONTINUE, U.S. TRADE DEAL CAN CUSHION FALL

HE Indian rupee has emerged as Asia’s worst-performing currency in 2025.

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After breaching the psychological level of 90 against the US dollar, the Indian currency took just 13 days to hit yet another historic low of 91 this week. Worryingly, it may remain under pressure in the near future, thanks to the endless wait for the India-US trade deal, persistent foreign portfolio investor (FPI) outflows, and thinning foreign direct investments. Its fall from 85 to 90 in less than a year is one of the sharpest declines in recent years. The depreciation comes at a time when Asian currencies such as the Singapore dollar, Thai baht, and Malaysian ringgit are gaining ground. This means the rupee has been falling against other currencies t