Asia’s worst-performing currency in 2025 is the Indian rupee. It is on track for its worst yearly fall since 2022, when Russia’s invasion of Ukraine drove oil prices beyond $100 per barrel, hurting India, which imports 90% of its crude.

This year’s decline is due to rising US tariffs on Indian exports and international investors leaving the local stock market.

Bloomberg Economics estimates that the Reserve Bank of India has sold more than $30 billion of foreign-currency assets since July to maintain the rupee, preventing a new low in mid-October.

On Nov. 21, the rupee fell to 89.4812 against the US dollar, suggesting the central bank quit supporting it. Analysts believe the RBI intends to maintain reserves in case US trade discussions are protracted.

Currency is at a turning point. A reduced tariff rate and improved US-India commerce could ease currency strain. If that doesn’t happen, the RBI may have to support the rupee.