Brief by Shorts91 Newsdesk / 10:41am on 17 Dec 2025,Wednesday India Global
India's rupee has declined 6% against the US dollar in 2025, becoming one of the worst-performing global currencies amid widening trade deficits, punitive 50% US tariffs, and record $18 billion foreign equity outflows. Trading at a record low of 91.075 per dollar, the rupee's real effective exchange rate of 96 is the lowest in over a decade. Despite looking cheap, investors remain wary without a US trade deal. India's Chief Economic Advisor expects an agreement by March 2026, but analysts warn further weakness may be needed to offset tariffs. The rupee's depreciation has eroded dollar returns, with India's equity index rising just 2% compared to China's 30% gain this year. (PC: Reuters)
