In 2025, the US dollar's strength and rising oil prices have caused the Indian rupee to decline. The rupee may strengthen if the US-India trade pact increases exports and capital inflows, according to experts, who have recently expressed confidence about the possibility of an agreement.
Due to a number of internal and international issues, the Indian rupee (INR) has remained weak throughout 2025, falling from roughly ₹83.3–83.5 in January to roughly ₹88.6–88.8 per US dollar by mid-November.A strong US dollar, high oil prices, and continuous withdrawals of Foreign Institutional Investment (FII) have all contributed to the currency's devaluation. India's exports are also under pressure from continued US tariffs and broader trade concerns.
The rupee has appreciated during the last week as a result of encouraging news about a possible trade deal between the US and India. According to experts, the rupee has recently benefited from optimism surrounding an impending bilateral trade agreement between the US and India. According to President Trump, a fair trade agreement that would lower tariffs and improve economic ties is "pretty close" to being finalized.
Due to increasing crude oil prices and withdrawals of foreign funds, the rupee dropped 15 paise to 88.65 against the dollar in early trading on Wednesday. Forex brokers reportedly stated that there was some support for the native currency at lower levels due to the revived optimism surrounding the India-US trade pact.
Due to increasing crude oil prices and withdrawals of foreign funds, the rupee dropped 15 paise to 88.65 against the dollar in early trading on Wednesday. Forex brokers reportedly stated that there was some support for the native currency at lower levels due to the revived optimism surrounding the India-US trade pact.
The rupee started to appreciate on Tuesday thanks to a decline in the value of the US dollar and renewed hope for trade negotiations between the US and India. Even though the rise was little, it suggested that the rupee would gain speed again following weeks of pressure.
The ongoing trade talks between the United States and India are expected to boost the Indian rupee, according to experts.
"The Indian rupee is likely to benefit from a successful US-India trade agreement. Rahul Kalantri, vice president of commodities at Mehta Equities Ltd., stated that better investor confidence may stimulate more foreign investment into India, while increased market access and exports to the US may result in more dollar inflows, strengthening the rupee.
The ongoing trade talks between the United States and India are expected to boost the Indian rupee, according to experts.
"The Indian rupee is likely to benefit from a successful US-India trade agreement. Rahul Kalantri, vice president of commodities at Mehta Equities Ltd., stated that better investor confidence may stimulate more foreign investment into India, while increased market access and exports to the US may result in more dollar inflows, strengthening the rupee.
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