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.

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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.