Rupee May Fall Despite RBI Stability Efforts

Economic Times Markets · stocks

Economists and forex specialists predict the Indian rupee could weaken to 96-97 against the dollar by the end of FY27, contrary to the Reserve Bank of India's expectations. Persistent outflows from Indian financial assets, high crude oil prices, and rising global yields are pressuring emerging markets. Despite a balance-of-payments surplus, it's largely due to specific inflows absorbed by the RBI, with other capital flows showing weakness. The RBI has intervened heavily to prevent further depreciation, leading to a decline in foreign exchange reserves.