Indian Rupee Hits Record Lows Amid Growing Trade Pressures

The Indian rupee fell to record-low levels in December, reflecting mounting external pressures and delays in reaching a trade agreement with the United States.

The weak performance underscores the growing challenges facing the Indian rupee amid persistent uncertainty in trade relations.

During Tuesday’s session, the currency slid to 89.95 rupees per dollar in the domestic market, while offshore trading saw it weaken further to around 90.15, heightening fears of breaching the psychological 90 level.

Analysts at IDFC First Bank warned that the Indian rupee could move beyond 90 per dollar by the end of the month if trade talks with Washington remain unresolved, particularly given the high tariffs imposed on Indian goods.

These pressures come as exports suffer under tariffs of up to 50%, while strong imports boost demand for dollars, widening the current account deficit in the third quarter and adding further strain on the currency.