Forecasts for the Indian rupee change all the time, affected by news events and relative sentiment towards the Indian economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of INR in the currency markets.
INR in the markets
The rupee is doing remarkably well in what is normally a seasonally weak time of year and despite a 35 percent rise in the oil price this year (oil is India's largest import).
In early May, by the narrowest of margins, the rupee reached a 16-month high against the Australian dollar (₹48.4), before falling back slightly. It rose towards long-term highs against the euro (₹77.3) and was flat on the year against the US dollar (₹69.2), although it was 8 percent higher against the greenback than it had been in October of last year.
There are several reasons to favour rupee weakness in the coming months, the first being strong seasonal patterns: the rupee typically falls in value every second-quarter (April-to-June) due to India’s heightened gold demand heading into Akshaya Tritiya.
In addition, the decision by the US to end waivers on sanctions for countries buying oil from Iran (countries like India) might create quite a storm in the Indian economy.
There’s also the matter of May’s Indian elections, before which political uncertainty might weight on rupee valuations.
You can also read our full Foreign Exchange Guide to India.
USD-INR – Historical Rates
|1 Day||+0.6%||71.7901||12 Nov 2019|
|7 Day||+1.7%||71.0100||06 Nov 2019|
|30 Day||+1.3%||71.2470||14 Oct 2019|
|3 Month||+1.1%||71.4202||15 Aug 2019|
|1 Year||-0.5%||72.5643||13 Nov 2018|
|5 Year||+17.1%||61.6340||14 Nov 2014|
|10 Year||+55.9%||46.3070||15 Nov 2009|
*For period to 13-Nov 21UTC when USD/INR was 72.1851
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Last update: 7 Jan, 2019