Despite the early gains, the Indian currency still faces pressure from elevated crude oil prices and firm US yields. However, foreign exchange reserves of around USD 721 billion, recent improvements in portfolio flows, and the Reserve Bank of India’s presence in the market are providing support.
Commenting on the currency’s outlook, Anindya Banerjee, head of commodity and currency research at Kotak NEO, told PTI, “We therefore see a gradual upward bias in USD-INR within the range, rather than evidence of a disorderly move.”
The outlook suggests the rupee could continue to move in measured steps as investors assess global economic conditions and domestic market support.
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