As of October 2, 2025, the Indian Rupee (INR) is experiencing significant pressure, following a continued decline that has persisted for five months. Recently, the INR fell to a record low of 88.8000 against the U.S. dollar, driven largely by escalating trade tensions with the United States. In particular, increased tariffs on Indian exports and higher fees for H-1B visas have exacerbated the rupee's depreciation. Analysts point to these developments as critical factors impacting the nation's currency stability.
In response to these challenges, the Reserve Bank of India (RBI) has proposed initiatives to enhance the global use of the rupee, including permitting authorized banks to lend rupee-denominated loans to neighboring countries. This strategy aims to boost the rupee's presence in international markets. Moreover, with some experts suggesting a potential interest rate cut at the forthcoming RBI policy meeting, despite expectations for the rate to remain steady at 5.50%, the central bank is clearly gearing up to address the economic headwinds that the INR currently faces.
From a trading perspective, the INR remains under pressure against major currencies. The exchange rate for INR to USD is currently at 0.011269, which is 1.4% below its three-month average. In comparison, the INR to EUR stands at 0.009621, also 1.6% below its average, while INR to GBP is at 0.008390, 1.1% below its three-month norm. Conversely, INR to JPY appears more stable, trading near its three-month average of 1.6861, within a narrow range over the past weeks.
Market analysts suggest that while the INR is facing persistent challenges, ongoing efforts to enhance its international stature may provide some long-term improvements. However, businesses and individuals engaged in international transactions should remain vigilant and consider the implications of current trends when planning future transactions.
