The downside in the Indian rupee, which has been steadily depreciating over the past months, is unlikely to abate soon as it hit yet another record low on Monday.
The Indian rupee vis-a-vis the US dollar is currently trading in a tight range, under pressure from a mix of domestic strength and external challenges, including US tariffs and persistent capital outflows.
The higher US interest rates and a cautious risk appetite among foreign investors are also resulting in continuous pressure on the Indian Rupee. Experts believed that the rupee's weakness is being reinforced by deteriorating trade fundamentals.
The Indian Rupee may continue to weaken gradually and inch towards the psychological level of 90 per US dollar by March 2026, highlighted a report by Union Bank of India.
India's currency rupee, may finally have bottomed out after a persistent weakness, according to Jefferies. In its latest GREED & fear report, the global financial services firm highlighted a "growing likelihood that the rupee has bottomed" following its months-long depreciation.
The rupee traded within a narrow range of Rs 87.83-Rs 88.70 per dollar over the past month, with volatility easing sharply from over 4 per cent in October to about 1.2 per cent in November.
Gold prices in India are expected to maintain an upside bias for the rest of 2025, driven by a projected uptrend in global gold prices and a weakening Indian rupee, according to a report by ICICI Bank Global Markets.
An RBI release said that Authorised Dealer (AD) banks in India and their overseas branches can now lend in Indian Rupees to individuals and institutions in Bhutan, Nepal, and Sri Lanka, including banks in these jurisdictions, to facilitate cross-border trade transactions
The medium-term outlook for the Indian rupee remains tilted to the downside unless there is relief from the persistent twin deficit, current account and fiscal deficit, according to a report released by Union Bank of India.
India's external debt stood at USD 747.2 billion at the end of June 2025, marking an increase of USD 11.2 billion over the level recorded at end-March 2025, according to data released by the Reserve Bank of India (RBI) on Tuesday.
The weakness in the Indian rupee continued on Tuesday, with the currency touching a record low of 88.67 per U.S. dollar at the time of filing this report. The pressure on the rupee came amid concerns over U.S tariffs and jitters surrounding H1B visa rules.
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the Clearing Corporation of India Ltd (CCIL) should prepare for the next phase of financial market development by facilitating currency trading beyond the dollar-rupee pair, as part of the broader goal of internationalising