FX.co ★ Indian Rupee Slips Past 91 Level

The Indian rupee weakened beyond the 91 per USD mark on Tuesday, continuing its trajectory of record lows for the fourth consecutive session. This decline has been attributed to hedging activities and persistent foreign outflows, exacerbated by stalled trade negotiations between the United States and India. Over the course of the year, the currency has depreciated by over 6%, positioning it among the worst-performing currencies in emerging markets. The decline is largely driven by significant US tariffs impacting trade and investment flows. In 2025, foreign investors have divested more than $18 billion in Indian equities, edging towards the highest annual outflow on record. Despite interventions from state-owned banks through dollar sales to alleviate the pressure from maturing Non-Deliverable Forward (NDF) positions, analysts indicate that any significant recovery for the rupee is unlikely without advancements in trade discussions. India's trade secretary mentioned on Monday that the nation is in active discussions with the US to secure an agreement "sooner rather than later." Meanwhile, there has been some relief as a November rebound in exports contributed to narrowing the trade deficit to a five-month low, with shipments to the US increasing.