Why Is the Indian Rupee Weak in 2025–26? Explained Why Is the Indian Rupee Weak in 2025–26? Explained Clearly (With Evidence) In 2025–26, the Indian rupee (INR) has weakened significantly against the U.S. dollar, reaching historic lows and drawing attention from economists, markets, and policymakers. This article breaks down the core reasons behind this trend, the economic impacts, and what experts are saying , using recent data, news reports, and analyses. Video Source Watch this video for an explanation of the rupee’s fall: 1. Widening Trade Deficit Is a Major Pressure Point One of the key reasons for the rupee’s decline is India’s widening trade deficit —when imports exceed exports. India’s trade deficit has widened because imports (especially crude oil and gold) have surged , while exports have struggled relative to foreign demand and tariff barriers. A trade deficit increases the demand for foreign currency like the U.S. dollar, which puts downward press...