Still, it was the worst month for the rupee in more than three years. “Only intervention by RBI has allowed the rupee to remain protected from crossing the 92 levels,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors. “Because there has been very good dollar demand on a daily basis, the rupee on its own cannot gain and needs the support of the RBI or inflows from foreign investors for an upside movement.”
The rupee ended at 91.98/$1.
ETMarkets.com
Currency 7% Weaker in FY26
This is versus its previous close of 91.96. Depreciating 2.3% in January, the currency logged its worst month since September 2022, as persistent foreign outflows and firm corporate dollar demand kept the unit under strain.
The rupee traded between 91.98 and 91.84, with RBI selling dollars at weaker levels, traders said.
Market participants are now eyeing the budget on Sunday, with economists warning that restoring investor confidence would be a key challenge, as uncertainty over New Delhi’s trade deal with Washington continues to add pressure on financial markets and weaken the rupee. The Economic Survey on Thursday pointed out that the Indian rupee underperformed in 2025 despite good economic growth, lower inflation and favourable outlook. “The rupee’s valuation does not accurately reflect India’s stellar economic fundamentals. In other words, the rupee, therefore, is punching below its weight,” said chief economic adviser V Anantha Nageswaran in the introduction to the survey.
Even as India has sealed a trade pact with the UK and European Union, delays in finalising a deal with the US are weighing on Indian financial assets and its currency. Persistent foreign capital outflows are adding further pressure on the rupee. The Indian rupee has weakened 7% in FY26, from 85.57/$1 in early April.
