Exchange Rate in India
India - Exchange Rate
The rupee crashes to record low due to large economic imbalances and suppressed investor appetite for emerging-market assets
The rupee weakened to a historic high against the USD in September, compounding the poor performance of recent months. This was largely due to India’s economic imbalances, as demonstrated by the merchandise trade deficit which has reached multi-year highs in recent months, and falling investor confidence in developing economies. On 11 September, the rupee traded at 72.6 per U.S. dollar, worsening 5.4% from the same day a month earlier and the weakest it has been against the USD in history. So far this calendar year, the rupee has shed 13.6% of its value against the dollar.
The rupee’s recent woes have come amid resurging oil prices—as of 11 September, Brent crude oil prices rose more than 40% compared to the same day a year earlier. This has put enormous pressure on India’s merchandise trade balance given that India imports most of its oil and has underpinned inflationary pressures. Moreover, FocusEconomics Consensus Forecast panelists expect the current account deficit to deteriorate this year. In addition to higher oil prices, investors have been fleeing emerging-market assets in recent months, most evidently in Turkey and Argentina. This follows the tightening of monetary policy in major developed economies and the erection of trade barriers around the world, dampening global growth potential. With a similar scenario affecting capital markets in India, this has resulted in outflows from the stock and bond markets, worsening the current account deficit.
Looking ahead, FocusEconomics panelists see the rupee strengthening from recent lows, ending FY2018 (which ends in March 2019) at 68.2 INR per USD and ending FY 2019 at INR 67.9 per USD.
India - Exchange Rate Data
|Exchange Rate (vs USD)||60.02||62.29||66.25||64.86||65.11|
5 years of economic forecasts for more than 30 economic indicators.
India Exchange Rate Chart
Source: Thomson Reuters.
|Bond Yield||7.01||-0.04 %||Jun 13|
|Exchange Rate||69.53||-0.09 %||Jun 13|
|Stock Market||39,741||-0.08 %||Jun 13|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
June 12, 2019
Industrial production increased 3.4% in April in annual terms, up from March’s revised 0.4% increase (previously reported: -0.1% year-on-year) and marking the fastest pace of growth in six months.
June 12, 2019
In May, consumer prices rose 0.57% compared to the previous month, matching April’s figure.
June 6, 2019
As expected by market analysts, the Reserve Bank of India’s Monetary Policy Committee (MPC) cut all monetary policy rates by 0.25 percentage points at its 4–5 June meeting, reducing the repo rate to 5.75%, the marginal standing facility to 6.00% and the reverse repurchase rate to 5.50%.
June 5, 2019
The composite Purchasing Managers’ Index (PMI) produced by Nikkei and IHS Market was unchanged in May at April’s 51.7.
May 31, 2019
In the fourth quarter of fiscal year 2018—which ended in March 2019—GDP grew 5.8% in annual terms, down from the 6.6% expansion recorded in the third quarter, below market analysts’ expectations of 6.3% and marking the slowest expansion since Q1 FY 2013.