The Indian currency plunged to an all-time low of 88.80 vs US dollar in futures trading today, Wednesday, as persistent trade headwinds, portfolio outflows, and tariff tensions with the United States continued to weigh heavily on world's fourth and Asia’s second largest economy.

The domestic currency settled at 88.7656 in Tuesday’s spot session and was last quoted at 88.7514 the next day. The currency has already depreciated nearly 3.6 per cent so far in 2025, making it one of the worst-performing major Asian currencies.

Analysts warn the rupee could test 90 levels in the near term, with some cautioning of further downside if policy action and trade negotiations do not materialise soon.

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But what's behind rupee's free fall?

Trump's tariff jitters

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