The Indian rupee experienced significant volatility in 2025, frequently breaching the 90-mark against the U.S. dollar and becoming Asia's worst-performing currency. The rupee's decline, starting in May and hitting lows in August and December, was attributed by analysts to external factors and uncertainty surrounding an India-U.S. trade deal, rather than domestic economic weakness. Volatility is expected to persist due to shifting economic and geopolitical cues.