The Indian Rupee (INR) against the Hong Kong dollar (HKD) is exhibiting notable pressure due to several underlying factors. Recent analysis indicates that the INR has reached a 90-day low at approximately 0.086867 HKD, which is 1.3% below its three-month average of 0.088044. Over this period, the exchange rate has remained within a stable range of 3.0% from 0.086867 to 0.089498, reflecting the challenges facing the rupee.
Analysts attribute the INR's decline to a combination of persistent economic pressures. Significant events in September 2025 saw the INR touching a historic low against the USD, exacerbated by rising US visa fees that curtailed foreign equity inflows. This created an environment of concern for investors and businesses interacting with the INR. Additionally, the Reserve Bank of India's intervention through expanding dollar forward positions by $6 billion indicates active efforts to stabilize the currency amid continued demand for dollars driven by importers hedging against economic uncertainties.
The outlook for the INR is further clouded by weak manufacturing exports, reduced foreign direct investment, and a narrowing interest rate differential with the US. These elements combine to suggest that the INR will likely face ongoing depreciation pressure in the coming weeks.
In contrast, the Hong Kong Dollar (HKD) has recently benefited from interest rate cuts by the Hong Kong Monetary Authority (HKMA), which reduced rates in September and October to align with U.S. Fed actions. The HKD has also witnessed currency interventions aimed at supporting its peg, reflecting proactive measures from the HKMA to maintain stability amidst changing market dynamics.
Overall, the INR's vulnerability, coupled with HKD's current supportive measures, suggests a challenging period for the INR-HKD exchange rate. Forecasters recommend monitoring these economic indicators closely, as they could significantly influence international transaction costs for businesses and individuals engaged in trade or travel between India and Hong Kong.
