The Indian rupee on Wednesday fell to an all-time low of 90.2 against the United States dollar. The Indian currency has come under pressure because of punitive tariffs by the United States and the weak inflow of capital, Reuters reported.
This was coupled with uncertainty about the trade deal between India and the US.
The previous record low of 89.9 was reached on Tuesday.
The rupee has fallen about 5% in 2025, putting it on track to record the sharpest decline in a year since 2022, Reuters reported. This makes the rupee the worst-performing Asian currency this year.
The pressure on the rupee comes despite strong economic growth.
The Indian economy grew by 8.2% year-on-year in the July-September quarter, up from 7.8% in the previous quarter, showed data released by the National Statistics Office on Friday.
The economy had recorded 5.6% growth in the same period last year.
Bilateral relations between New Delhi and Washington deteriorated in August after US President Donald Trump doubled the tariffs on Indian goods to 50% for purchasing Russian oil amid the war in Ukraine. Trump has repeatedly alleged that India’s imports were fuelling Russia’s war on Ukraine.
On November 10, Trump said that Washington would bring down the tariffs imposed on India “at some point” and claimed that New Delhi had substantially reduced its purchase of Russian oil.
Trump also said that his country was getting close to a “fair deal” with India.
However, the delay in the announcement of the trade deal and the resulting uncertainty about the future of exports were creating a stir across the market, The Financial Express reported on Monday.
Meanwhile, foreign investors have pulled out more than $16 billion from the Indian equity market this year, Reuters reported on Monday. The merchandise trade deficit, or when imports of goods exceed exports, had also hit an all-time high in October.
The Reserve Bank of India’s Monetary Policy Committee will begin its three-day meeting on Wednesday to decide on the interest rate. The decision will be announced on Friday.
