Indian Rupee

Amid deepening strategic ties and discussions around Free Trade Agreement (FTA) between India and Israel gaining momentum, the State Bank of India (SBI), the only Indian bank with a presence in Israel, is looking to facilitate bilateral trade in Indian rupees. "In view of India's significant trade flows from/to its partner countries and growing interest among the global trading community to trade in the Indian rupee, it has been envisaged by our banking regulators, i.e. Reserve Bank of India, to permit Indian banks to facilitate settlement of exports and imports of their respective corporate clientele in INR. Israel has been identified as one of the partner countries under this mechanism," CEO of SBI Israel, V Manivannan, told PTI. Israeli entities undertaking exports/imports through this mechanism shall receive and make payments in INR, which shall be credited into the Special Rupee Vostro Account (SRVA), against invoices for the supply/purchase of goods or services from the Israeli

The rupee breached the 90-per-dollar level amid sustained corporate dollar demand and FPI outflows, even as banking system liquidity turned surplus after two weeks

A weak rupee has wiped out nearly half of global investors' gains, leaving foreign funds waiting for a currency rebound to revive returns

Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range

RBI data shows its outstanding net short dollar position in the rupee forward market rose to $66.04 billion by end-November, up from $63.6 billion at end-October

The currency repeatedly fell to record lows during the year, slipping past the 91 level at one point, highlighting the sustained depreciation pressure

The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners

Beyond the immediate cues, stalled India-US trade talks and ​foreign portfolio outflows continue to weigh on the rupee despite RBI intervention

The Indian rupee slipped past ₹90 per dollar in December 2025, down 4.9% for the year, underperforming peers amid volatile capital flows and uneven forex support

The key uncertainty remains the currency, but if that stabilises and growth improves, India can deliver respectable returns, says Christopher Wood, global head of equity strategy at Jefferies.

The rupee slipped to 89.72 per dollar on Monday on strong dollar buying in the NDF market, before trimming losses to close at 89.65 as dealers flagged a shift in RBI's approach

For planning, the split matters. Near-term levels determine the cost of payments due now. Longer-term expectations do not help if your fee deadline is in the next few weeks

Weak rupee and higher airfares are pushing up overseas travel costs for Indians, with long-haul destinations seeing package prices rise by up to 14% in 2025

Majority of the respondents said the domestic currency would appreciate to 88.5 against the dollar by end FY26

RBI intervened to curb speculative bets, say dealers

The rupee rose 0.73% to 90.37 per dollar, snapping a five-session fall, as dealers cited likely RBI dollar sales to curb volatility after the currency hit fresh lows

The Indian currency strengthened past 90-per-dollar mark in Wednesday's session as the central bank curbed excess volatility

The rupee is among the worst-performing currencies globally this year, sliding 6% against the dollar

A key reason is the Reserve Bank of India's $64 billion short-dollar position - a pledge to supply large amounts of dollars in the future through derivatives contracts with lenders

The rupee is currently the worst-performing Asian currency, with 5.95 per cent depreciation witnessed in 2025 so far