₹ may trade around 90 vs $ by Dec-end

Indian currency likely to rise to 88.5 by end of FY26

- ANJALI KUMARI

After depreciating 4.1 per cent against the US dollar so far in the current calendar year (CY25), the rupee is expected to settle around 90 per dollar by year-end, according to a majority of respondents in a Business Standard poll. However, the poll also shows that most respondents expect the Indian currency to appreciate to around 88.50 per dollar by the end of the current financial year (FY26).

The rupee has depreciated by 4.3 per cent so far in FY26. A combination of factors, including delays in securing a trade deal with the United States, coupled with foreign outflows, resulted in a sharp weakening of the rupee, with the currency breaching the 91-per-dollar mark in the previous week.

After a highly volatile week that saw the rupee hit fresh lows for four consecutive sessions, the currency ended the week about 1.3 per cent stronger against the dollar due to intervention by the Reserve Bank of India (RBI). It oscillated between 91.08/dollar and 89.25/dollar amid choppy trade.