The Indian rupee saw a very volatile year in 2025. The domestic currency has depreciated around 5% in the year, marking it the highest depreciation in three years. It also remained as Asia’s worst-performing currency. Since the Trump administration took charge in January, the rupee has been weak due to concerns over trade tariffs. The subsequent geopolitical tensions, such as the Russia-Ukraine war and the Israel-Iran conflict, along with India-Pakistan tension, also contributed to the headwinds. When Trump imposed a 50% tariff on Indian goods, the rupee weakened further along with shocks from the H-1B visa fee hike. Further, consistent foreign outflows and higher gold prices impacted the rupee performance.