Indian Rupee Depreciation Creates Investment Opportunity
The Indian rupee has hit record lows against the US dollar in 2025, making it the worst-performing major Asian currency. UBS Asset Management views this as an investment opportunity, despite challenges like weak investment flows and pending US tariffs.
Insights:
The Indian rupee has experienced a sharp decline against the US dollar in 2025, reaching a record low of 91.0750 in December 2024. This depreciation has positioned the rupee as the worst-performing major Asian currency this year, down nearly 5%. The currency's real effective exchange rate has dropped to a decadal low, prompting interest from investors such as UBS Asset Management. Shamaila Khan shamailakhanof UBS describes the currency as 'very cheap' at current levels, suggesting a potential market inflection point for forex investors.
