Understanding the Dynamics of INR - India's Rupee
The Indian Rupee has been on a deliberate, consistent depreciation journey since the 1991 liberalisation. From ₹17 in 1991 to ₹90 in 2025 that's 34 years of losing roughly 4.5 % per year on average.
INR Has Depreciated 5% To 17% In Last 11 Months Vs. Other Currencies
The Indian rupee recently hit an all-time low of ₹90 per US dollar, indicating more than 5.1% depreciation so far this year. A combination of domestic pressures like a record trade deficit, rising gold imports, and ongoing current account deficits (CAD) and international headwinds like the US tariff hikes under Trump policies and outflows of foreign portfolio investors (FPI) are driving this decline.
Source: Bloomberg, data as of December 3, 2025
The rupee has declined against several major currencies in addition to the US dollar. The weighted average of the rupee's exchange rate against 40 major trading partners, known as the Nominal Effective Exchange Rate (NEER), indicates a decrease of almost 8% in 2025 (up to October 2025).