Indian Rupee Hits Record Low as US Tariffs and Trade Impasse Challenge India's Economic Outlook

Dec 17, 2025 04:36 pm CST

The Indian rupee has fallen to an all-time low against the US dollar, declining 6% this year due to punitive 50% US tariffs, widening trade deficits, and record $18 billion investment outflows. Despite looking undervalued, analysts believe the currency may continue to face pressure until India secures a trade agreement with Washington, creating significant challenges for global investors while potentially boosting export competitiveness in the long term.