₹ may trade around 90 v$ $ by December-end

BUSINESS STANDARD POLL

- 

Market participants further said the central bank’s dollar sales for a second session signalled that it would not tolerate a one-way depreciation narrative, helping curb speculative positioning and restore two-way risk in the market.

“The depreciation pressure on INR is driven by a sharp slowdown in capital inflows and the limited ability of the RBI to use the forward book to sterilise its spot dollar intervention. These two factors are unlikely to change anytime soon, even with a trade deal with the US. Hence, we expect depreciation pressures to resurface in the medium term, though the pace of depreciation is expected to be more moderate in FY27,” said Gaura Sen Gupta, Chief Economist at IDFCFIRST Bank.