26 MARCH 2026
Currency Turning Point?
Why has the Rupee been a concern for investors? The Indian Rupee has depreciated steadily for almost two decades, creating a persistent risk for foreign investors. Recent weakness was compounded by foreign investor outflows caused by the US trade war and renewed interest in Chinese assets.
What is supporting stability now? Strong domestic buying of stocks and record foreign exchange reserves have improved financial resilience, reducing dependence on foreign capital flows.
Could the Rupee stabilise? The currency is now trading at a 12-year low on a real effective exchange rate basis. This historically cheap valuation may provide a margin of safety for overseas investors who are considering buying Indian assets.
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