Economic Times16h agoBusinessIndia
Indian Rupee Faces Depreciation; RBI Explores FX CRR to Stabilize Currency
Quick Look
- The Indian Rupee has depreciated nearly 9% against the USD since early 2025, facing headwinds from equity valuations, AI theme exclusion, and geopolitical tensions.
- The RBI has intervened heavily, selling $87 billion and increasing its short forward book.
- Measures like tax removal and FCNR deposits aim to attract capital, but a proposed FX cash reserve ratio could resolve currency leads and lags without altering interest rates.
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The Indian Rupee has depreciated nearly 9% against the USD since early 2025, facing headwinds from equity valuations, AI theme exclusion, and geopolitical tensions. The RBI has intervened heavily, selling $87 billion and increasing its short forward book. Measures like tax removal and FCNR deposits aim to attract capital, but a proposed FX cash reserve ratio could resolve currency leads and lags without altering interest rates.
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This article was originally published by Economic Times.
