The Print, Bloomberg November 27 report, the Indian Rupee fell to a historic low in 2025 and has become the worst-performing currency in Asia. On November 21, the rupee fell sharply against the US dollar to 89.4812. There are two reasons for the weakening of the rupee in 2025: first, the US significantly increased tariffs. In early May, the market had optimistic expectations about the US-India trade agreement, which attracted foreign capital to accelerate inflows, so the rupee against the US dollar reached a high point of 83.7538. However, in July and August, Trump announced that he would impose a 50% tariff on most Indian exports, and threatened to punish India for purchasing Russian oil and gas and weapons, causing the rupee to suffer its largest monthly drop since 2022. In addition, the US plan to greatly increase the fees for H-1B visas (most of which are issued to Indian applicants) further drove down the rupee. Second, foreign capital is leaving the Indian stock market. Due to the impact of US tariffs, overvalued stock prices, economic and corporate profit concerns, a large amount of foreign capital is leaving the Indian stock market. As of November 25, foreign capital has withdrawn nearly $16.3 billion (163 billion) from the Indian stock market, approaching the 2022 record. In response, the Indian central bank (RBI) adopted a "crawl-like arrangement" strategy, adjusting the exchange rate slightly according to inflation differences - since late July, it has sold more than $30 billion in foreign exchange assets to resist the decline. Analysts believe that under the influence of the above factors, an exchange rate around 88.8 will be difficult to maintain, and this move is only a strategic measure. Currently, the depreciation of the rupee may benefit exports, but it also raises the price of imported goods, increasing inflation and import cost burdens.
Original: www.toutiao.com/article/1850127062289603/
Statement: This article represents the views of the author.