The Indian rupee breached the ₹88 mark against the U.S. dollar on September 12, 2025, reflecting pressure from U.S. tariffs and global market volatility. The depreciation comes as the United States maintains steep tariffs on Indian goods, creating short-term stress on currency markets. Traders and analysts noted that concerns over trade tensions, combined with dollar strength, contributed to the rupee’s slip.

Despite the decline, several factors suggest that the currency may find stability soon. India’s foreign exchange reserves remain robust, providing a buffer against external shocks. The country’s current account deficit continues to be narrow relative to its economic size, offering additional support to the rupee. Moreover, strong performance in services exports, particularly in IT and digital services, continues to generate steady foreign inflows, helping offset some of the downward pressure.

Financial analysts project that the rupee is likely to trade within the ₹86.5–₹88 range over the coming months. They emphasize that while U.S. tariff-related concerns may continue to create short-term volatility, India’s macroeconomic fundamentals, including fiscal prudence and resilient exports, provide a stabilizing influence. The Reserve Bank of India (RBI) may also intervene if necessary to smooth excessive fluctuations in the currency market.

Investors are advised to monitor the evolving trade landscape closely, as any further escalation in U.S.-India tariff measures could temporarily weigh on the rupee. However, with strong external reserves, a healthy trade balance, and consistent capital inflows, the currency is expected to avoid sharp declines. Analysts suggest that prudent policy measures and ongoing global engagement will play a key role in maintaining confidence in the rupee, ensuring that the currency remains resilient despite external challenges.