Indian Rupee Hits Record Lows In 2025: Why The Currency Is Crashing Despite Strong GDP

The Indian rupee is ending 2025 as Asia’s worst-performing currency, sliding over 6% this year and breaching the crucial 91-per-dollar mark. This sharp fall comes despite India’s strong economic fundamentals, with GDP growth clocking an impressive 8.2% in the July–September quarter and robust manufacturing and services activity. So what’s dragging the rupee down? Persistent foreign capital outflows, fears of a widening trade deficit, stalled India–US trade talks, and high punitive tariffs have created a perfect storm. The rupee has also weakened sharply against the euro, pound, and yuan, not just the dollar. For businesses, the falling currency is a double-edged sword—exporters gain, but import costs, foreign debt, and inflation pressures rise. Consumers feel the pinch through costlier electronics, overseas education, and travel. With all eyes on the RBI, the big question remains: is 91 the floor, or the new normal?