Year Withdrawal of foreign capital and increasing demand for dollars from importers made the rupee significantly weaker in 2025. The Indian currency rupee declined by 5 percent this year, making it among the worst performing currencies in Asia. On December 31, 2025, the rupee fell by 13 paise to close at 89.88 per dollar. Month-end demand and buying of dollar by foreign portfolio investors (FPIs) put considerable pressure on the rupee.
The condition of rupee worsened after Trump came to power
In the Interbank Foreign Exchange market, the rupee opened at 89.89 against the dollar and reached a low of 89.95 and a high of 89.84 during trading. On Tuesday, the rupee had closed at 89.75 against the US dollar. On an annual basis, a total decline of 4.95 percent has been recorded in the rupee this year. It was at Rs 85.64 per dollar on December 31, 2024. “The rupee is the worst performing currency in the Asian region since Donald Trump came to power in the US,” said Anil Kumar Bhansali, executive director, Finrex Treasury Advisors LLP. It fell by 5 percent in 2025, which is the biggest decline in the last three years.
Rupee reached all time low of 91.08 this year
Anil Kumar Bhansali said, “Continued withdrawals by FPIs and investors’ level of stake selling, factors like defence, oil and gold demand have badly affected the rupee, due to which it fell to a low of 91.08. However, there was some improvement later.” Meanwhile, the dollar index, which reflects the position of the US dollar against six major currencies, stood at 98.33 with a rise of 0.10 percent. A big rise was seen on the domestic stock market front today. The international standard Brent crude fell by 0.13 percent to $ 61.41 per barrel.
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