The Indian rupee has depreciated approximately 5.2% against the dollar year-to-date as of December 19, 2025, crossing the 90-per-dollar mark. Despite strong domestic economic fundamentals like cooling inflation and robust GDP growth, the rupee faced pressure from foreign portfolio investor outflows, a widening trade deficit, and global factors including US interest rate expectations and trade deal uncertainty. An Invesco report suggests the rupee is stabilizing, with the worst potentially over, anticipating gradual stabilization as global conditions normalize.