The currency dynamics are up for a haul as 2025 ushers in grandiose plans for the Indian rupee and the US dollar to change their course of plans. The US political narrative with Trump leading the economic reins is currently bolstering the US dollar. At the same time, the Indian rupee has consistently been recording new lows, with India’s foreign institutional investor interest plummeting to new lows. Will INR be able to turn the tables around and win against the might of the US dollar? Let’s find out.

Also Read: Ripple’s RLUSD Outshines PayPal and Euro: Could RLUSD Hit $1.80?

Morgan Stanley Predicts A Strong US Dollar For 2025

The financial behemoth Morgan Stanley has come up with a new prediction for the US dollar. Lauding USD’s efforts as of late, MG shared how the dollar has been defeating all odds, rising high against a basket of multiple currencies, proving that it can handle a plethora of competition and challenges along the way.

The investment giant predicted that the US dollar would continue its stellar value performance in 2025. MG later streamlined reasons, adding to the stellar USD growth metrics, with economic and monetary growth differentials playing a key role in determining the future pace of the USD.

MG remarked that Trump’s current administrative stance on promoting the usage of USD on all fronts is also contributing to the current USD surge.

“The upcoming administration’s focus on boosting domestic manufacturing, increasing tariffs, and deregulating industries. This could spur business growth and sustain higher interest rates, supporting the dollar. President-elect Trump has also discussed imposing tariffs. Or other measures on countries that challenge the dollar’s trade dominance or reserve currency status.”

Also Read: Bitcoin Reclaims $101,000: Will BTC Hit $140,000 Next?

Why Is INR Hitting New Lows?

The INR recorded a spree of fresh lows against the US dollar. On Monday, the INR traded 4 paise lower than the US dollar. INR sat at a new price value of 85.83 against the American currency. The primary reason for the fall has been touted as increased foreign investment outflows resulting in utter equity market chaos.

USD INR Prediction For January 2025

As per CoinCodex, USD INR value could further plummet, ultimately sitting at 86 by the end of January 2025.

“The USD to INR exchange rate is forecasted to increase by 1.43% in the next month. Rising from the current rate of ₹ 85.70 to ₹ 86.92. Currently, the sentiment in the USD/INR market is estimated to be bullish.”

Also Read: How High Will Cardano (ADA) Surge After Trump Takes Office?