Rupee Fall Deep Dive: Will The Government Step In Or Let It Slide?

Is the Indian rupee heading towards ₹90 per USD? Gaurav Dua, Head of Capital Market Strategy at Mirae Asset Sharekhan, sheds light on the rupee’s sharp depreciation, the RBI’s intervention strategy, and the potential risks and opportunities for investors.

The Reserve Bank of India has already spent $20-25 billion in forex reserves to stabilise the currency, but now the focus has shifted to infusing liquidity rather than aggressively defending the rupee. According to Gaurav Dua, while the rupee has performed better than other emerging market currencies, it is likely to depreciate further, potentially reaching ₹89-90 per USD in the second half of 2025.

For investors, a weakening rupee means imported inflation, especially given India’s dependence on energy imports. However, with crude oil prices currently low, the overall impact might be less severe than in past depreciation cycles. The government and the RBI are expected to let the rupee find its own level rather than intervene heavily.

📉 What should investors do now? Should they hedge against further depreciation, or is this an opportunity? Watch this insightful discussion to understand the road ahead!