Why India’s Weak Rupee Is About More Than Just the Iran War

A country whose economy is growing faster than those of its peers would typically see its currency strengthen. India has been expanding more quickly than most other Asian economies, including manufacturing powerhouse China, yet the rupee has fallen in value every year since 2018.

The drop accelerated last year after President Donald Trump imposed steep tariffs on US imports from India, and the currency reached an all-time low this year following the energy price shock from the Iran war. Only a small portion of those losses were clawed back following recent central bank efforts to shore up the rupee, and after the US and Iran agreed to a temporary ceasefire.