A widening trade deficit, foreign investment outflows, and a stronger US economy have been driving down value of the Indian rupee against the US dollar. India imports more than it exports, hence driving demand for dollars and depreciating the currency. Foreign investors pulled $15 billion in late 2024, therefore lowering the demand for rupees. Early 2025 saw the Reserve Bank of India selling $10 billion in dollar reserves in order to slow down the drop. High US interest rates also draw worldwide capital, therefore bolstering the dollar. These elements keep under pressure the rupee, which depreciates versus the dollar even with intervention attempts.