In 2025, the Indian rupee has quietly become Asia’s worst-performing currency but the real impact isn’t just on trading screens, it’s inside Indian homes. From higher cooking oil prices and costlier foreign education to travel bills and shrinking savings returns, rupee volatility is reshaping middle-class finances in ways few anticipate. Why is the currency weakening despite strong GDP growth, healthy forex reserves, and a manageable current account deficit? Host Anirban Chowdhury talks to Madan Sabnavis, Chief Economist, Bank of Baroda to unpack how import inflation seeps in with a lag, why RBI interventions focus more on volatility than levels, and why currency swings hurt consumers more than a steady decline. With foreign investors pulling billions out, US-India trade talks stalled, and global sentiment overpowering fundamentals, the rupee’s fate may lie beyond domestic control.
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