The Indian rupee notched an all-time low of 77.8, amid persistent foreign fund outflows, general dollar strength on the back of the prospects of Fed's aggressive monetary tightening plans, and soaring energy prices. Oil prices impact India’s current account deficit and trade balance significantly as India imports more than 80% of its oil needs. Locally, the central bank raised the repo rate by 40 basis points to 4.40%, in its first change in the rate in two years and its first rate hike in nearly four years, following persistently high inflation. Policymakers also lifted cash reserve ratio by 50 basis points to to 4.5%, effective from May 21st.
.
Historically, the Indian Rupee reached an all time high of 77.89 in May of 2022. Indian Rupee - data, forecasts, historical chart - was last updated on May of 2022.
The Indian Rupee is expected to trade at 78.15 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 79.07 in 12 months time.