The Indian Rupee (INR) has been experiencing fluctuating forecasts from various analysts, signaling a mixed outlook for the near future. Union Bank of India projects a depreciation of the INR towards 90 per US dollar by March 2026, citing both fundamental and technical factors that may undermine the currency. In contrast, Bank of America suggests that the INR could recover to around 86 per US dollar by the end of 2026, attributing recent declines to temporary global dynamics rather than issues within the Indian economy.
UBS Global Research has also adjusted its projections, now anticipating the INR could range between 90 and 92 per US dollar in 2026, influenced by potential trade agreements between the US and India and current risks. Conversely, Fitch Ratings sees a more optimistic scenario, forecasting the INR to strengthen to 87 per USD, driven by India's strong economic growth and lower inflation rates. However, Barclays takes a more cautious stance, predicting a further decline to around 94 per US dollar, reflecting concerns over capital outflows and limited intervention from the Reserve Bank of India.
Recently, the INR against the US dollar has hit 14-day lows near 0.011105, slightly below its three-month average of 0.011215. This indicates a relatively stable trading range of 3.6%, maintaining between 0.010999 and 0.011398. In contrast, the INR to Euro is trading at 7-day highs near 0.009491, although it remains 1.5% below its three-month average of 0.009634, having fluctuated within a stable range of 5%. Additionally, for the INR against the British pound, it is currently at 0.008265, which is down by 2.0% from its three-month average, while the INR to Japanese yen has shown slight strength at 1.7447, just above its average.
Overall, businesses and individuals engaged in international transactions should be aware of these fluctuating forecasts as they navigate upcoming currency exchanges and financial decisions.
