Rupee Set for Fresh Fall: Dollar to Touch ₹88.5?
ICICI Bank’s latest report predicts a further weakening of the Indian Rupee against the US dollar, potentially reaching ₹88.5 per dollar. This forecast follows the recent imposition of fresh tariffs by the US administration.
The report cites the new tariffs as a key factor contributing to the expected depreciation. Increased trade tensions between India and the US are putting downward pressure on the Rupee.
This projected decline has significant implications for India’s import bill and inflation. Higher import costs could impact various sectors, potentially affecting consumer prices.
The banking sector is closely monitoring the situation, bracing for potential volatility in the foreign exchange market. The Reserve Bank of India’s response will be crucial in mitigating the impact of this weakening Rupee.
This development underscores the vulnerability of the Indian economy to global trade dynamics. Businesses and policymakers need to prepare for potential challenges arising from this fluctuating exchange rate.
