The exchange rate forecast for the Saudi Arabian Riyal (SAR) to Indian Rupee (INR) reflects a complex interplay of recent economic developments. Analysts indicate that the SAR, which is pegged to the U.S. dollar at approximately 3.75 per SAR, remains stable, trading at around 23.97 INR. This value is approximately 1.4% above its three-month average of 23.64 INR and has stayed within a consistent range of 23.39 to 24.03.
In stark contrast, the Indian Rupee is currently facing significant challenges. It has depreciated to a historic low of 90.42 per U.S. dollar, suffering a 5% decline over the past year. Factors contributing to this downturn include a widening trade deficit exacerbated by steep tariffs on exports, which have heightened demand for foreign currency and applied additional pressure on the INR. Furthermore, substantial foreign investment outflows—amounting to nearly $17 billion since the start of 2025—have weakened the rupee further.
The Reserve Bank of India's recent policy shift to tolerate a weaker rupee in light of these economic pressures signals a lack of urgency to defend a specific exchange rate. This change may lead analysts from various sectors to project a continued decline in the INR, with some forecasters suggesting potential falls to 92 INR against the USD if a timely trade deal with the U.S. is not reached.
Given these dynamics, the SAR/INR exchange rate may remain stable in the short term, benefitting from the relative strength of the SAR due to its fixed peg and robust economic backdrop. However, any significant further decline in the INR could create opportunities for transactions favoring the SAR, making it essential for individuals and businesses to monitor these developments closely.
