The Indian rupee is expected to weaken further against the US dollar over the next two fiscal years, pressured by elevated energy prices, global risk aversion and less favourable interest-rate differentials, while government measures to attract foreign capital should help contain the pace of depreciation, BMI, a Fitch Solutions Company, said.
BMI expects the rupee to weaken to Rs 97 per US dollar by the end of FY2026-27, which runs from April 2026 to March 2027, and to Rs 99 per dollar by the end of FY2027-28, from Rs 95.4 currently.
The currency has already weakened by about 4 per cent since the start of the US-Iran conflict, with higher energy prices and a broader risk-off environment weighing on the rupee, the research firm said in a note.
India’s heavy dependence on imported energy is likely to remain a key source of pressure. The country imports about 90 per cent of its oil requirements, meaning sustained increases in Brent crude prices would raise the import bill and increase
Read more at the source
Disclaimer: The content of this post is sourced from external sites and is for informational purposes only. All rights and credits belong to the original authors and publishers.