Rupee drops 5% in 2025, becomes Asia's weakest currency
The Indian rupee ended 2025 at ₹89.88 per US dollar, falling nearly 5% over the year and earning the title of Asia's worst-performing currency.
The slide is mainly due to heavy foreign investor withdrawals and increased dollar demand from importers.
Why does this matter?
A weaker rupee generally makes things like fuel, gold, and imported gadgets pricier—so everyday costs could go up.
Exporters might get a boost selling abroad, but anyone with savings or investments in rupees loses value internationally.
What's behind the fall?
Foreign investors pulled $16.5 billion out of Indian stocks this year, creating extra demand for dollars and pushing the rupee down further—at one point hitting a record low of ₹91.08 in December.
Importers buying essentials also added pressure.
Any bright spots?
Despite global headwinds (like new US tariffs), the RBI says India's economy is still growing steadily thanks to strong local demand and low inflation—even as the dollar index was higher and the rupee weakened this year.