The Indian Rupee (INR) is currently facing a complex outlook as various analysts provide forecasts for its performance against the US dollar and other currencies. Recent reports indicate that the INR could weaken significantly in the next few years, with Union Bank of India forecasting a drop to 90 per US dollar by March 2026. This outlook is driven by a combination of fundamental and technical factors affecting the currency.
On the other hand, Bank of America suggests a potential recovery, predicting that the INR may appreciate to 86 per US dollar by the end of 2026. This optimism is based on the view that recent depreciation has been influenced more by temporary global factors rather than any inherent weaknesses in the Indian economy.
UBS Global Research has revised its forecast range to 90–92 per US dollar, pointing out that near-term risks exist, but improvements could arise from a US–India trade deal. Similarly, Fitch Ratings sees the INR strengthening to 87 per US dollar by 2026, supported by India’s robust growth and low inflation.
Contrarily, Barclays paints a more pessimistic picture, expecting the INR to weaken to around 94 per US dollar by the end of 2026, largely due to continued foreign capital outflows and minimal intervention by the Reserve Bank of India.
In terms of recent price data, the INR to USD is at a 14-day low of 0.011105, which is about 1% lower than its 3-month average of 0.011218, indicating a stable trading range of 3.6% between 0.010999 and 0.011398. The INR to Euro is at 0.009474, approximately 1.7% below its 3-month average of 0.009637, with trading stability in a 5% range from 0.009362 to 0.009826. against the British pound, the INR sits at 0.008249, 2.2% below its 3-month average of 0.008433, reflecting a stable range of 5.7% from 0.008193 to 0.008659. In contrast, the INR to Japanese yen is at 1.7418, just slightly above its 3-month average, maintaining a trading range of 6.9% from 1.6616 to 1.7759.
Overall, as businesses and individuals navigate the currency landscape, keeping an eye on these forecasts and market trends will be vital for making informed decisions on international transactions and currency exchanges.
