New Delhi, India , December 15, 2025 : The Indian Rupee slipped sharply on Monday, plunging to an all-time closing low of 90.74 against the US dollar, marking a decline of 25 paise in a single trading session. The historic fall reflects mounting global economic pressures, persistent currency volatility, and rising concerns over international trade dynamics.
Market analysts attribute the rupee’s weakness to a stronger US dollar, driven by renewed policy uncertainty and protectionist signals emerging from the United States under President Donald Trump’s administration. Expectations of tighter US monetary conditions and potential trade tariffs have strengthened the greenback, putting additional pressure on emerging market currencies, including the rupee.
The rupee’s depreciation has direct implications for India’s import-dependent sectors, particularly crude oil, electronics, and capital goods, while also dampening investor sentiment in equity and bond markets. Foreign portfolio investors remained cautious, limiting capital inflows amid global risk aversion.
However, there was a partial relief on the macroeconomic front. India’s trade deficit narrowed sharply by 61% in November, according to official data, supported by a decline in non-essential imports and resilient exports. Economists believe this could help stabilize the currency in the medium term if global conditions improve.
Despite the relief, experts warn that continued global uncertainty and geopolitical developments could keep the rupee under pressure in the near future.
