Dhiraj Nim of ANZ Research reports that the Indian rupee is likely to continue to depreciate gradually due to export risks. Nim said that since this year, the rupee has been the weakest currency in Asia. The reason is that large amounts of foreign portfolio capital have flowed out at a time when the US imposes high tariffs; it is expected that the rupee will depreciate further until a favorable trade agreement is reached with the US to boost the currency. Nim added that the Bank of India will focus on maintaining currency competitiveness to support exporters, and its intervention will determine the trend of the rupee. Starting in the 2027 fiscal year, rising inflation will also be critical to assess the competitiveness of the rupee, Nim said.

Dhiraj Nim of ANZ Research reports that the Indian rupee is likely to continue to depreciate gradually due to export risks. Nim said that since this year, the rupee has been the weakest currency in Asia. The reason is that large amounts of foreign portfolio capital have flowed out at a time when the US imposes high tariffs; it is expected that the rupee will depreciate further until a favorable trade agreement is reached with the US to boost the currency. Nim added that the Bank of India will focus on maintaining currency competitiveness to support exporters, and its intervention will determine the trend of the rupee. Starting in the 2027 fiscal year, rising inflation will also be critical to assess the competitiveness of the rupee, Nim said.