Indian Rupee Hits Record Low of 87.49: Volatility Ahead as RBI Shifts Strategy

The Indian rupee faces increased volatility as the Reserve Bank of India relaxes its grip on currency control amid persistent dollar strength. After depreciating 3% in 2024 and 2% in early 2025, analysts forecast the rupee to trade around 87.23 per dollar by February-end. The shift in RBI's intervention strategy under new Governor Sanjay Malhotra, coupled with Trump's recent tariff threats and potential RBI rate cuts, has created market uncertainty. Foreign exchange experts predict further weakening to 87.63 within six months, with some projecting levels of 90-92 by year-end.
Source: Reuters Poll