Rupee declines to 87.58, marking worst performance among Asian currencies in 2025

The Indian rupee declined to its lifetime low on Thursday as a dip in Asian peers added to the prevailing bearish outlook on the currency a day before a crucial monetary policy decision. Uncertainty about U.S. trade tariffs and persistent portfolio outflows have hurt the rupee over the last two months and made it the worst performing Asian currency in 2025.

The rupee declined to a record low of 87.5825 during the session before closing at 87.5775, down 0.1% on the day and more than 2% so far this year. Short bets on the rupee have risen to their highest since mid-July 2022 even as the bearish outlook on other regional currencies has eased, according to a Reuters poll.