Indian rupee enters 2026 on the back foot after worst annual drop in three years

The rupee was quoting at 89.8650 per U.S. dollar at 10 a.m. IST on Wednesday, marking a 4.74% decline for the year, its worst showing since 2022 when it dropped nearly 10%. The currency repeatedly fell to record lows during the year, slipping past the ‌91 level at ‌one point, highlighting the sustained depreciation pressure. "The rupee's performance this year was largely a capital-flow story, with the RBI adopting a more pragmatic and flexible approach to the exchange ‌rate and allowing the currency to we ...