The rupee has recovered to around 95 per dollar after RBI measures, but strategists say fund outflows and higher energy costs could still drag it towards 100 by 2027.
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01Summary
- 01The rupee has rebounded from 96.79 per US dollar to the 95 level after Reserve Bank of India measures.
- 02S&P Global Market Intelligence sees the currency around 97 per dollar by end-2026 and 98 by mid-2027.
- 03Mizuho Securities also expects the rupee to weaken to 98 per dollar by late 2026 or early next year.
- 04The RBI on Saturday made speculative rupee bets more expensive, tightened rebooking of cancelled derivatives and opened a special window for three public-sector oil firms.
- 05Foreign portfolio investors have sold direct Indian equities worth $32.5 billion this year through Oct. 13, according to NSDL data.
02Why it matters
A weaker rupee can raise the cost of imports, especially oil, and add pressure to businesses and households. It also signals that India is still exposed to capital outflows and global market stress despite central bank support.
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