New Delhi, Dec. 9 -- The recent weakness of the rupee, which has dropped nearly 4.7% in 2025 so far, has significantly underperformed compared to other currencies, has led to a substantial real effective exchange rate depreciation exceeding 9%.

According to a report by BofA Securities, this weakness in the Indian currency is likely to persist in the near term given the latent uncertainty of the US India trade deal, and pressure on capital flows, can and will impact various macroeconomic variables in India, if it persists.

On Tuesday, the rupee firmed slightly to 89.9775 at 10:45 a.m. IST, a touch stronger from its close of 90.07 in the previous session.

The brokerage firm said that the weakness in rupee can be a negative in the near te...