The Indian rupee depreciated by approximately 6% in 2025, falling below 90 per dollar. This decline is attributed to reduced Reserve Bank of India (RBI) dollar-selling interventions, increased US tariffs impacting exports, and speculative pressure in the NDF market. Economist Sebastian Morris suggests a widening growth gap and structural trade deficits could lead to further depreciation to 93 by early 2026, as capital inflows have not adequately matched dollar demand.