The Indian Rupee (INR) is facing substantial challenges, notably hitting a record low against the U.S. dollar due to U.S. tariffs on Indian exports and significant foreign portfolio outflows. As of September 5, 2025, the INR reached 88.36 per U.S. dollar, prompting intervention from the Reserve Bank of India to stabilize the currency. Analysts indicate that the INR's decline may slow, with forecasts suggesting it could settle around 88.04 by the end of September and hover near 88.00 in the coming year, indicating a cautious outlook amidst current pressures.
Conversely, the Hong Kong Dollar (HKD) remains resilient, supported by the Hong Kong Monetary Authority's (HKMA) commitment to its U.S. dollar peg, despite recent geopolitical volatility. The HKMA's market interventions are aimed at maintaining this peg, with significant purchases made to support the HKD as it neared the lower limit of its trading band. Capital inflows and strategic monetary policy have also bolstered the HKD, contributing to its stabilization.
Recent performance data reveals that the INR to HKD exchange rate is currently around 90-day lows of 0.088111, significantly below its 3-month average of 0.090165. This rate indicates a 2.3% decline, and the INR has traded within a narrow 4.3% range in recent weeks. As both currencies navigate their respective challenges, individuals and businesses should remain informed about these developments, as they may utilize strategies for favorable international transactions based on currency fluctuations.
