Falling Rupee should not be mistaken for inherently weak currency: SBI

The slide in Indian Rupee driven by a complex mix of external shocks, foreign investor outflows and limited RBI intervention should not be mistaken for an inherently weak currency, said SBI Research Ecowrap report on Thursday.

- TBG NETWORK

The Indian rupee on Wednesday slipped past the psychologically significant 90-per-dollar level, marking one of its fastest declines in recent years. The rupee has fallen from Rs 85 to Rs 90 per USD in under a year, far quicker than previous five-rupee intervals, which earlier took anywhere between 581 to 1,815 days. SBI in its report noted this as the second-quickest fall since the 2013 Taper Tantrum. Since April 2, 2025, when the United States announced sweeping tariff hikes across economies, Indian rupee has deprecated by nearly 5.5% against USD, most amongst the major economies, notwithstanding sporadic phases of appreciation owing to optimism over positive, mutually beneficial conclusion.