The Saudi Arabian Riyal (SAR) to Indian Rupee (INR) exchange rate has recently reached a 90-day high of approximately 24.14, 1.9% above the three-month average of 23.68. This movement reflects a stable trading range for the SAR, which has fluctuated from 23.39 to 24.14 over this period. Analysts believe the SAR will remain stable, largely due to its fixed peg to the U.S. dollar at 3.75 riyals, thereby insulating it from regional currency volatility.
In contrast, the Indian Rupee has faced considerable challenges, recently hitting a record low of 90.42 per U.S. dollar. This decline can be attributed to a combination of factors, including a widening trade deficit exacerbated by a 50% tariff on Indian exports to the U.S. and significant outflows of foreign investments, amounting to nearly $17 billion this year. Economists suggest that these elements have systematically increased demand for U.S. dollars while simultaneously weakening the INR.
The Reserve Bank of India (RBI) has shifted its policy approach, allowing for a more flexible rupee amid these pressures, stating a preference to manage volatility rather than defend a specific exchange rate. As per recent forecasts from economists, the INR could depreciate further without a swift resolution to trade tensions with the U.S., with some forecasts suggesting a potential fall to around 92 rupees per dollar.
Given these dynamics, the SAR’s resilience against the backdrop of the INR’s weakening presents a favorable opportunity for individuals and businesses engaged in currency transactions between these two currencies. As developments unfold, constant monitoring of both currencies will be essential for effective financial planning.
