The Indian rupee on Monday fell to an all-time low of 90.64 against the United States dollar amid uncertainty over a potential trade deal between New Delhi and Washington, Reuters reported. The previous record low of 90.55 was touched on Friday.
The rupee has depreciated 5.5% in 2025, making it the worst-performing Asian currency this year, according to Reuters. Foreign investors have also withdrawn $18 billion from the Indian equity market so far in 2025.
Indian goods are currently facing a combined US tariff rate of 50% due to the absence of a trade deal. A 25% reciprocal duty was imposed on August 7, followed by an additional 25% punitive levy on August 27. These tariffs were introduced as part of US President Donald Trump’s campaign against countries purchasing discounted oil from Russia amid the ongoing war in Ukraine. Trade negotiations between the two countries, however, have gained fresh momentum in recent months.
The fall in the rupee has also drawn political criticism. On December 4, Congress chief Mallikarjun Kharge blamed the Narendra Modi government, alleging that the weakening of the currency reflected poor economic policies. “If the government’s policy were good, the value of the rupee would increase,” he told reporters outside Parliament.
Kharge’s remarks followed comments by Chief Economic Advisor V Anantha Nageswaran, who said he was “not losing sleep” over the rupee’s decline, noting that it was not impacting inflation or exports.