The exchange rate forecast for the Indian Rupee (INR) against the Hong Kong Dollar (HKD) reflects a mix of pressures stemming from domestic initiatives and external economic factors. Analysts observed that the INR reached a record low of 88.8000 against the U.S. dollar in September 2025, driven by escalating trade tensions with the United States. Factors such as new tariffs on Indian exports and increased visa fees have contributed to this depreciation. Despite the current weakness, some experts anticipate that the Reserve Bank of India (RBI) may consider a rate cut during its upcoming policy meeting to stimulate economic growth, despite prevailing concerns about inflation and currency weakness.
Simultaneously, efforts by the RBI to enhance the global use of the rupee could play a significant role in shaping future exchange rates. The proposal to allow banks to issue rupee-denominated loans to neighboring countries and establish official exchange rates for major trading partners may provide a foundation for strengthening the INR in the longer term.
In contrast, the Hong Kong Dollar has recently experienced a cut in the base interest rate by the Hong Kong Monetary Authority (HKMA), which lowered rates to 4.50% to align with the U.S. Federal Reserve. This marks the first reduction in nearly a year, indicating the HKMA's responsiveness to global interest rate movements and its commitment to maintaining the currency peg to the U.S. dollar.
The current exchange rate of INR to HKD is at 0.087677, which is 1.9% below its three-month average of 0.089413. Over this period, the INR to HKD exchange has traded within a relatively stable range of 0.087557 to 0.091678, indicating some resilience despite external challenges.
Given these developments, market watchers should remain attentive to geopolitical dynamics and central bank policies, which will influence the INR-HKD exchange rate in the coming months. The interplay between local economic strategies and global financial conditions will be crucial for businesses and individuals engaged in international transactions, as fluctuations in these currencies could have lasting implications on costs and financial planning.
