Rupee Forecast: Rs 97 by 2026-27, Rs 99 by 2027-28
The Indian rupee is expected to depreciate further against the US dollar over the next two fiscal years, according to a report by BMI, a Fitch Solutions Company. The forecast suggests that the rupee will fall to Rs 97 per US dollar by the end of FY 2026-27 and reach Rs 99 per dollar by the end of FY 2027-28.
The weakening rupee has already dropped around 4% since the start of the West Asia crisis. The latest depreciation was triggered by the RBI's decision to bring forward the closure of its concessional FCNR(B) forex-swap facility, which raised concerns over future dollar inflows and liquidity.
Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors, noted that the rupee was under noticeable pressure due to the market's surprise at the RBI's decision. The immediate trigger for the currency's trading around 95.60-95.62 a dollar was the RBI's announcement.