Rupee Poised for More Losses Amid RBI's Monetary Easing Focus

The Indian rupee faces continued depreciation pressures as the Reserve Bank of India (RBI) prioritizes monetary easing to stimulate growth. Following a 25 basis point repo rate cut, the rupee has weakened 2% quarter-to-date, closing at 86.89 per dollar on Wednesday. Analysts, including DBS Bank, predict further declines, with the rupee expected to touch 88.8 by mid-2025. Rising US inflation and foreign outflows add to the challenges. While RBI's interventions have curbed volatility, its easing stance may limit the rupee’s upside potential.
Sources: Moneycontrol, Economic Times, Business Standard, Reuters