The Indian Rupee (INR) is currently experiencing a mixed outlook, with various analysts providing forecasts that suggest both potential depreciation and appreciation in the coming years. Union Bank of India predicts the rupee may weaken to 90 per US dollar by March 2026, citing various fundamental and technical pressures as key influences. In contrast, Bank of America foresees a potential strengthening of the INR to 86 per US dollar by the end of 2026, suggesting that recent declines are more aligned with temporary global factors than with fundamental weaknesses in the economy.
UBS Global Research has adjusted its forecast range for the INR to 90-92 per US dollar for 2026, drawing attention to near-term risks while also considering improvements from potential trade deals between the US and India. In a more conservative perspective, Barclays foresees further depreciation, expecting the rupee to reach around 94 per US dollar by the end of 2026, primarily due to ongoing foreign portfolio outflows and limited intervention by the Reserve Bank of India.
Fitch Ratings presents a slightly optimistic viewpoint, projecting the INR will strengthen to 87 per US dollar by the end of 2026, bolstered by India's strong economic growth and diminishing inflation rates.
Currently, the INR is trading at 14-day lows against the US dollar near 0.011082, which is 1.2% below its 3-month average of 0.011212. The rupee has remained stable within a 3.6% range, fluctuating between 0.010999 and 0.011398. against the Euro, the INR at 0.009460 is 1.8% below its 3-month average of 0.009632, maintaining a 5.0% range from 0.009362 to 0.009826. The rupee's performance against the British pound shows a rate of 0.008189, which is 2.8% lower than its 3-month average of 0.008427, also operating within a stable 5.8% range from 0.008183 to 0.008659. The INR against the Japanese yen is holding steady at 1.7361, near its 3-month average and within a 4.3% range.
Overall, these fluctuating forecasts indicate that businesses, expats, and travelers should keep a close watch on the INR, as external factors such as trade dynamics and global economic conditions could further impact the rupee's performance in the near future.
