The Indian rupee is likely to continue its downward trend, potentially heading towards ₹91.50, due to persistent capital outflows and a widening current account deficit.
Bearish technicals and foreign portfolio selling have been the main drivers of this trend, with investors increasingly selling off their investments in India as they seek better returns elsewhere.
The current account deficit, which has been increasing steadily over the past few years, is also a major concern for the rupee. A widening current account deficit can lead to increased pressure on the currency, making it harder for it to appreciate against other currencies.
Rising CAD (Current Account Deficit) and persistent foreign portfolio selling are expected to keep pressure on India’s currency ahead of RBI policy.
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