The SAR to INR exchange rate has shown some stability in recent weeks, with the SAR trading at approximately 23.65 INR, slightly above its three-month average of 23.53. Over the past two months, the pair has exhibited a consistent range, fluctuating between 23.19 and 23.81 INR. This stability is largely attributed to the riyal's fixed peg to the U.S. dollar, maintaining an exchange rate of 1 USD = 3.75 SAR. Therefore, movements in the U.S. dollar directly influence the SAR's performance against other currencies, including the Indian rupee.
Recent developments affecting the Indian rupee point to significant challenges. The rupee reached a historic low against the U.S. dollar in September 2025, influenced by rising H-1B visa fees and a decline in foreign equity inflows. Economists have observed that the Reserve Bank of India (RBI) has taken measures to stabilize the currency by expanding its short dollar forward positions, indicating an active defense strategy against the rupee's depreciation.
Throughout October, strong demand from importers for dollars has increased pressure on the INR, exacerbated by concerns over U.S. tariffs and legislative changes. Analysts suggest that continued weak manufacturing exports and a narrowing policy rate differential with the U.S. are likely to sustain pressure on the INR in the near term.
Looking ahead, analysts forecast that the SAR to INR exchange rate may maintain its stability within the current range, as the Saudi riyal is less susceptible to rapid fluctuations due to its dollar peg. However, volatility may arise from shifts in U.S. economic policies and trends in Indian macroeconomic indicators, necessitating careful monitoring for individuals and businesses engaging in international transactions. Overall, the SARINR exchange rate is expected to remain relatively stable, but participants in the market should remain vigilant of external factors that could influence both currencies.
