The Indian rupee, after depreciating over 6% in 2025 and crossing 90 per dollar, faces a challenging 2026 due to weak capital flows and trade uncertainty. Its future trajectory hinges on the resolution of India-US tariff discussions, which could reverse export losses and attract investors. Economists suggest that clarity on tariffs by early 2026 might lead to minimal or no further depreciation, while continued trade friction could signal a prolonged downcycle.