Rupee unlikely to breach the 88-mark in FY25: Experts

THE RUPEE HAS fallen 232 paise, or 3.37%, since the US Federal Reserve cut interest rates in September for the first time in four years, but the majority of market participants believe that it will not breach the 88-mark by the end of this fiscal.

- ANUPREKSHA JAIN Mumbai, January 13

One-third of the experts in an FE poll believe that it will be closer to 88, as the Reserve Bank of India (RBI) may not intervene too aggressively.

"Depreciation will continue in the first quarter and the rupee may touch levels of 87-87.25 by March-end. The RBI is letting the rupee to find its own value, but at the same time, it is ensuring that there should be no significant risk. Other Asian currencies have depreciated much more than the rupee. Even after today's (Monday) move, the rupee is still 7-8% overvalued," said Abhilash Koikkara, head forex and commodity at Nuvama Professional Clients Group.