New Delhi: Currency experts have warned that the Indian rupee may remain under pressure in the coming months due to rising crude oil prices, persistent foreign investor outflows, global uncertainty and geopolitical tensions.
The rupee has depreciated by around 6-7 per cent against the US dollar this year, slipping from near 89 at the beginning of 2026 to a record low beyond 96 per dollar. Experts said the sharp decline in recent weeks has unsettled financial markets.
Currency expert K N Dey told ANI that the speed of the rupee's fall since May 11 has surprised market participants, while both regulators and the government have remained largely silent. He attributed the weakness mainly to aggressive selling by foreign institutional investors (FIIs), noting that investors have already withdrawn Rs 2.65 lakh crore from Indian markets this year, close to last year's total outflow of Rs 3.04 lakh crore.
Dey warned there is no clear sign of stabilisation and said even a slide towards the Rs 100 mark against the dollar cannot be ruled out.
Ajay Suresh Kedia of Kedia Advisory said strong dollar demand, rising crude oil prices and elevated US bond yields are further weighing on the rupee. He added that concerns over weaker monsoon prospects and continued FII outflows are also hurting sentiment. While RBI intervention is helping contain volatility, he said the broader trend still points towards weakness.
Economist and former UN advisor Santosh Mehrotra cautioned that the rupee's fall could increase inflationary pressures and warned it may touch Rs 100 per dollar within a quarter if current conditions persist. (ANI)
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