UBS sees rupee at 94/$ in FY27 even as trade woes ease

The rupee is expected to continue its long-term depreciation, reaching 94 against the dollar in FY27, as structural headwinds outweigh temporary relief from easing trade tensions, according to UBS Investment Bank.

- Subhana Shaikh

Capital flows remain central to UBS's cautious outlook.

The bank said the currency could weaken to 92 by the end of the current financial year, before further sliding. The Swissbank’s outlook hinges on a combination of persistent capital outflows, underwhelming nominal GDP growth, and a central bank intent on rebuilding its war chest.

The rupee snapped its four-day losing streak and appreciated by 12 paiseto settle at 90.18 against the dollar on Tuesday.