By Admin 
There has been a big decline in the Indian rupee last year and it is expected to remain under pressure in future too. According to Rohit Arora, Head of Asia FX and Rates Strategy at investment bank UBS, the Indian rupee may fall by about 4 percent in the year 2026. He believes that the delay in trade agreements between India and America, slowness in GDP growth rate and the possibility of capital outflow from the country due to this are continuously putting pressure on the rupee.
Rupee will collapse further this year!
The impact of delays in trade agreements has been clearly seen in the last few months, when the Indian rupee slipped to a record low. During this period, limited intervention by the Reserve Bank of India (RBI) also increased the weakness of the rupee to some extent. Within just 231 days, the rupee fell from 85 to 90 against the dollar, which is considered a sign of increasing pressure in the foreign exchange market. In December, the rupee even crossed the level of 91 against the dollar, after which the RBI had to intervene to stop the fall.
According to market experts, the increasing demand for US dollars, investors’ caution regarding the India-US trade agreement and global tariff disputes have been the major reasons behind the ongoing decline in the rupee for the last two quarters. The trade tension between the world’s two major economies has directly impacted Indian exporters, while the pressure on the rupee has deepened due to increased demand for dollars from importers.
Why is the decline coming?
However, the rupee definitely got some relief in the recent trading session. On Wednesday, January 7, the rupee strengthened by 31 paise and closed at 89.87 (provisional) against the dollar. The domestic currency was supported by possible intervention by RBI and fall in global crude oil prices. In the interbank foreign exchange market, the rupee opened at 90.20 and closed stronger after trading in the range of 89.75 to 90.23. A day before this, on Tuesday, the rupee had closed at 90.18 with a rise of 12 paise, although experts believe that long-term pressure may still persist.
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