The Indian rupee weakened past the 91 per USD threshold on Tuesday, extending its run of record lows for a fourth straight session, pressured by hedging activity and ongoing foreign outflows amid stalled US-India trade talks. The currency has dropped more than 6% this year, making it one of the worst-performing emerging market currencies, as steep US tariffs weigh on trade and investment flows. Overseas investors have sold over $18 billion of local equities in 2025, heading toward the largest annual outflows on record. While state-run banks intervened with dollar sales to ease pressure from maturing NDF positions, analysts say the rupee is unlikely to recover until there is progress in trade negotiations. India’s trade secretary said on Monday that the country is engaging with the US to see if a deal can be reached “sooner than later.” Meanwhile, a rebound in exports in November has eased pressure, with shipments to the US rising and the trade deficit narrowing to a five-month low.