Indian Rupee Continues to Plummet, Analysts Predict New Low within a Year

According to a Reuters poll, over a third of analysts expect the Indian rupee to reach a new low within a year, despite the Reserve Bank of India's efforts to cut volatility. The rupee recently fell to a 10-month low due to expectations of strong U.S. yields. The RBI's interventions have limited the depreciation, but the rupee is still expected to remain weak. Median forecasts show a modest gain in the rupee in the short term, but less than 1% gain in six months and around 1.5% gain in a year. Rising global food prices and the need to keep the currency strong are reasons for the RBI's intervention. Inflation in India is expected to remain above the RBI's target range, but the central bank has relied on market intervention rather than policy action.