Mumbai: The year 2025 turned out to be very difficult for the Indian rupee. If we look at the currency market, this was one of the most challenging years in recent times. Clear data shows that the rupee became
the worst-performing currency in Asia. During the year, it lost nearly 5 percent of its value against the US dollar, while many other Asian currencies managed the pressure much better.
A Calm Start, Then Sudden Trouble
At the start of 2025, the rupee was trading near 86 per dollar. At that time, markets believed the pressure would remain limited. For several months, things looked under control. But in the last two months of the year, the situation changed very fast. Global uncertainty increased, the dollar became stronger, and foreign investors started pulling money out of India.
The Fall to a Record Low
These factors together pushed the rupee lower day by day. Heavy selling by foreign investors made the situation worse. Finally, on December 17, the rupee touched a record low of 91.07 per dollar. This sharp fall shocked the market and raised serious concerns about currency stability.
How Other Asian Currencies Performed?
When compared with other Asian currencies, the rupee’s weakness became even more clear. The Indonesian rupiah fell about 4 percent, and the Philippine peso weakened around 2 percent. In contrast, some currencies showed strength. The Japanese yen gained about 1 percent, the South Korean won rose nearly 3 percent, the Chinese renminbi strengthened around 4 percent, and the Malaysian ringgit jumped close to 10 percent.
Why the Rupee Fell So Much?
There was no single reason behind the rupee’s fall. A strong dollar, global risk fears, and continuous foreign fund outflows all played a role. India’s high import bill, especially for energy, also added pressure. As investors searched for safer assets, emerging market currencies like the rupee suffered the most.
Impact on People and the Economy
A weak rupee is not bad for everyone. Exporters benefit because they earn more rupees for every dollar. But for common people, it means higher inflation, costlier foreign education, and more expensive overseas travel.
What Lies Ahead?
The rupee’s journey from 86 to beyond 91 shows how global events and investor trust shape currency markets. The big question now is whether the rupee can recover or stay weak for some more time.
