The Indian rupee has experienced a notable depreciation against the US dollar, recently crossing the 96 mark and touching an all-time low of 97. While it saw a slight recovery to 96.45, experts, including former IMF Deputy Managing Director Gita Gopinath, have warned that the rupee could soon reach the 100 level.
Why the Indian Rupee is Under Pressure
Several factors are contributing to the rupee's weakness. Primarily, surging crude oil prices are increasing India's import bill, putting significant pressure on the currency. Additionally, a strong US dollar globally and substantial selling by foreign investors, who have withdrawn over ₹2.20 lakh crore this year, are exacerbating the decline. Over the past year, the rupee has weakened by approximately 10-12% against the dollar, marking its worst performance since 2022.
Regional Currencies: A Mixed Picture
The Indian rupee's struggles are not isolated. Many currencies across Asia are facing similar pressures against the dollar, though some have shown resilience or even appreciation.
Pakistan's Currency Struggles Continue
The Pakistani rupee also remains weak against the dollar. Despite some temporary stability from IMF assistance and import controls, it continues to face significant pressure. Reports indicate that the Indian rupee has also weakened against the Pakistani rupee.
Bangladesh Taka Weakens Amid Import Bills
Similarly, the Bangladeshi taka is experiencing weakness against the dollar. This decline is largely attributed to pressure on foreign exchange reserves and a rising import bill. The Indian rupee has also depreciated against the taka.
China's Yuan Shows Stability
In contrast, the Chinese yuan has shown limited decline against the dollar. China's central bank has actively intervened to maintain the yuan's stability, keeping it around the 7 mark against the dollar and appearing less pressured than many other Asian currencies.
Russia's Ruble Appreciates Significantly
The Russian ruble has notably strengthened against the dollar over the past year. In May 2025, one dollar was equivalent to 88-92 rubles, but by May 2026, it had appreciated to 71-74 rubles per dollar, representing an increase of approximately 9-10%.
Japan's Yen Under Pressure from Low Rates
The Japanese yen has also weakened against the dollar, with the USD/JPY pair remaining above 150-160. This means it takes more yen to purchase one dollar. Extremely low interest rates in Japan are cited as a primary factor for the yen's 7.21% decline over the past year.