The Indian Rupee (INR) is currently facing significant challenges in the currency market, notably hitting a record low of 88.62 against the US Dollar on September 23, 2025. Analysts have attributed this decline to the increased US H-1B visa fees and a reduction in foreign equity inflows, which have collectively placed downward pressure on the rupee. The situation has been exacerbated by ongoing strong demand for dollars from importers and concerns regarding US tariffs and immigration policies.
In response to these pressures, the Reserve Bank of India (RBI) has actively intervened by expanding its short dollar forward positions by $6 billion in October, signaling its commitment to stabilizing the currency. Forecasts indicate that this intervention is crucial amidst persistent hedging activities by importers, as they remain wary of the evolving economic landscape.
Moreover, experts highlight that the INR is likely to continue facing headwinds from weak manufacturing exports and a narrowing policy rate differential with the US. A report from early November has underscored these factors, suggesting that the rupee will remain under pressure as foreign direct investment stagnates.
Currently, the INR to USD exchange rate stands at 0.011275, slightly below its 3-month average. In comparison, the INR to EUR is at 0.009777, just above its average, while against the GBP, the INR trades at 0.008620, reflecting a robust performance compared to its historical range. Notably, the INR to JPY is at 1.7750, exceeding its average by a significant margin.
Market analysts will closely monitor these dynamics as the rupee navigates a challenging environment, influenced by domestic and international economic factors. Understanding these movements can help individuals and businesses strategize their international transactions as the currency landscape evolves.
