The Indian rupee (INR) is currently at an all-time low, breaching the ₹90–93 per dollar mark, and has become Asia’s worst-performing currency, depreciating 4.1% against the US dollar (USD) since January 1, 2026.
While most Asian currencies have been under pressure, the Chinese yuan (CNY) has managed a marginal 1.4% appreciation against the US dollar, making it the best performer among its Asian peers.
The depreciation in the INR is followed by the Thai baht, which has declined 3.5% against the US dollar.
The weakness in the rupee comes amid a combination of global and domestic factors. A stronger US dollar, driven by expectations that the Federal Reserve will keep interest rates elevated, has put pressure on emerging market currencies.
Other key drivers include significant outflows by foreign portfolio investors and strong dollar demand driven by soaring oil prices.
Rising crude oil prices amid the West Asia crisis have further added to the Rupee’s challenges, given that India is a major oil importer. Any further increase in oil prices will raise the import bill and keep the INR under pressure.
Research by: Ujjwal Thakur
