istock photo for BL | Photo Credit: Dmitriy Razinkov
From a fundamental perspective, the bank expects the broader trend of depreciation to persist, taking the Rupee closer to the $90 mark over the next year. It stated “By March 2026, fundamentally, we continue to see USD/INR inching towards psychological threshold of $90 levels”.
The report stated that from a technical perspective, the domestic currency could strengthen if there are sustained equity inflows into Indian markets or if there is concrete progress in the ongoing India-US trade talks.
In such a scenario, the Rupee may move towards ₹87.80 per dollar, while ₹88.30 per dollar will act as a key intermediate support level for traders. On the other hand, any weakness in the Rupee is likely to face stiff resistance near ₹88.80 per dollar, a level where selling pressure typically accelerates.
A decisive move above this level could push the currency quickly towards ₹89.30 per dollar, the report added. Geopolitical developments and tariff-related news will remain crucial in shaping market sentiment. For the near term, the Rupee is expected to trade in a narrow range this week with a mild appreciation bias.
This trend is being supported by a consolidating US Dollar Index (DXY) and cautious foreign portfolio flows due to high domestic equity valuations. The report noted that if the India-US trade deal is finalized, it could trigger $2-3 billion of inflows into the country.Other supportive factors include Brent crude prices staying below $64 per barrel, the low October CPI reading of 0.25 per cent year-on-year which has increased expectations of a December RBI rate cut, and steady domestic SIP flows.
The report pointed out that key global data releases such as US October retail sales, the September trade balance, weekly jobless claims, and the upcoming FOMC minutes will be important for assessing the strength of the dollar and the Fed’s rate outlook. Flash PMIs for India and the US will also help shape growth expectations.This year, the Rupee has fallen to fresh record lows. The bank observed that the recent move towards the ₹88-89 range is in line with underlying fundamentals.
Published on November 20, 2025
