The exchange rate forecast for INR to JPY has been influenced by several key factors on both sides. As of November 2025, the Indian Rupee (INR) is struggling, having reached a record low against the US dollar at 88.62. This decline is attributed to various pressures, including increased H-1B visa fees in the US that have dampened foreign equity inflows. Analysts indicate that the Reserve Bank of India's recent intervention—expanding its dollar forward positions by $6 billion—aims to counter the rupee's depreciation, but ongoing importer hedging and a narrowing policy rate differential with the US continue to weigh heavily on the currency. Weak manufacturing exports and reduced foreign direct investment further complicate the INR's outlook, with experts predicting continued challenges ahead.
Meanwhile, the Japanese Yen (JPY) is facing its set of challenges primarily stemming from monetary policy divergence and political changes. The Bank of Japan's cautious stance on interest rate hikes, combined with a current 10-year government bond yield at 1.6% versus the US yield at approximately 4.1%, keeps the yen under pressure. The recent election of Sanae Takaichi as Japan’s first female prime minister has sparked expectations of expansionary fiscal policies, with plans for a comprehensive economic package. Analysts believe these factors contribute to the yen's depreciation, while Japan's call for G7 vigilance against excessive forex market volatility highlights concerns regarding its rapid decline.
In terms of recent price movements, the INR to JPY exchange rate is recorded at 1.7478, which is 2.2% above its three-month average of 1.71. The rate has exhibited relative stability, trading within a 7.1% range from 1.6585 to 1.7759. This stability contrasts with the Japanese yen's challenges, with the OIL to USD price currently at 62.38, which is 4.1% below its three-month average, indicating volatility in the oil markets that can also impact the yen indirectly. The complex interplay of these factors suggests that volatility in the INR and JPY may persist, and market participants should be cautious in their currency transactions.
