Experts estimate the price to reach ₹82-82.50 in FY 2025

New Delhi. The Indian rupee is expected to appreciate to around Rs 82-82.50 in FY2025, while in the near term it will trade between Rs 83-83.50 against the US dollar, said a top economist at CARE Ratings.Chief Economist Rajni Sinha According to , the Indian rupee is expected to trade between Rs 83-83.50 in the near term, although geopolitical tensions could pose potential risks. “We expect the Indian rupee to appreciate marginally to around 82-82.50 during FY2025. The rupee will rise, supported by India’s strong fundamentals in the context of healthy economic growth of around 7 per cent, comfortable CAD (current account deficit) of around 1 per cent of GDP, and global bonds. There will be an expected increase in FPI (foreign portfolio investment) inflows after India’s inclusion in the indices.

Sinha said that although concerns over Iran-Israel tensions have subsided, the strong dollar continues to weigh on emerging market currencies, including the Indian rupee. He said that so far in the year, the rupee remains the top performer against some emerging market and Asian peers, which is likely to be supported by the RBI intervention. Markets have reduced expectations of a Fed rate cut after strong economic data in the US and higher-than-expected inflation. Moreover, recent remarks from Fed officials have been hawkish, Sinha said. He said the market’s focus is now on US GDP data to be released on Thursday and personal consumption expenditure inflation data on Friday. The US economy is expected to show resilience. Headline inflation is expected to increase slightly while core inflation is expected to moderate slightly. Any data surprises may cause market participants to revise their US Fed rate cut bets accordingly, Sinha said.