Indian Rupee Falls to Fresh Low on Outflows, Trade Deal Impasse

The Indian rupee fell to a new record low, pressured by outflows from the nation’s stocks and bonds on delays in securing a deal with the US to cut tariffs.

The rupee weakened 0.6% to 90.4863 per dollar on Thursday. The currency is Asia’s worst performer in 2025 after sliding 5%, adding inflation risks for the fuel-importing country.

India is among the few major economies yet to seal a trade pact with the US, with the country’s chief economic adviser at an accord being reached by March. Meanwhile, the 50% US tariffs are hurting India’s exports while firm imports have pushed up demand for the dollar, weighing on the rupee.

A recent selloff in Indian bond markets has also prompted foreign investors to exit the nation’s index-eligible bonds, hurting the currency, said Anil Kumar Bhansali , head of treasury, Finrex Treasury Advisors. Dollar demand from companies had added to the strain, he said.