15.12.202504:58:49UTC+00Rupee Continues Record Decline

The Indian rupee has declined to a new low, surpassing 90.6 to the US dollar, as ongoing trade negotiations with the US show no resolution and foreign investors continue withdrawing funds from local equities and bonds. This year, the rupee has depreciated by 5.5%, earning it the distinction of being the worst-performing currency in Asia. The decline is largely attributed to substantial US tariffs that have negatively impacted exports and diminished investor confidence in Indian markets. To date, international investors have sold more than $18 billion in Indian stocks during 2025, with bond sales exceeding $500 million in December alone. Investor outlook remains pessimistic, influenced by statements indicating that a US trade agreement may not materialize before March, coupled with stalled discussions with the European Union. Concurrently, inflation rose slightly in November to 0.71%, which remains significantly below the Reserve Bank of India's (RBI) lower target of 2%, suggesting the possibility of interest rate cuts in 2026. The market is now attentive to India's trade data for November, anticipated to reveal a $32 billion goods deficit, which is an improvement from the record $41 billion deficit recorded in October.