INR/USD Price & Performance (INRUSD)

The Indian rupee has weakened 1.8% against the US dollar in 2025, surpassing its entire 2023 depreciation. Analysts attribute this to RBI's new flexible currency stance under Governor Sanjay Malhotra and global trade tensions. Tariffs imposed by the US have further pressured the rupee, which recently crossed the 87 mark.123

Indian equity indices saw sharp declines, with Sensex dropping 1.9% and Nifty falling 1.9%. Weak global cues, including US tariff threats, drove the sell-off. The IT sector faced significant pressure, while Jindal Worldwide defied trends with a 20% surge, buoyed by its entry into the EV market and strong financial performance.423

The rupee fell to 87.18 against the dollar, driven by trade-related uncertainties and foreign capital outflows. Weak local equities and US tariff policies have compounded the pressure. However, lower crude prices and a softer dollar index have prevented steeper declines, providing some relief to the currency.123