India’s Rupee Hits Record Low Amid Stalled Trade Talks
The Indian rupee has plummeted to 89.6 against the dollar, marking its worst performance in Asia this year. This represents a sharp decline from its 85.64 opening in January, with analysts at Nomura and S&P Global Market Intelligence forecasting a further drop to 92 by March’s end.
Trade tensions with Washington remain the critical factor. India’s 50% tariffs—higher than China’s—have stalled negotiations, triggering a 12% September export slump to the U.S. While November saw a 22.6% rebound, Nomura’s Sonal Varma warns prolonged tariffs could redirect supply chains away from India.
Hanna Luchnikava-Schorsch of S&P notes the rupee’s undervaluation but cautions recovery hinges on a U.S.-India trade deal, which her team expects within six months. The currency’s fate now mirrors broader geopolitical risks in emerging markets.
