ANZ Research: Rupee to hit 91.5 amid continued weakness

• ANZ Research predicts further rupee weakness, forecasting the rupee at 91.5 over the medium term.
• The Indian rupee recently hit a record low of 90.73, influenced by US trade deal uncertainty, importer hedging, and portfolio outflows.
• The Reserve Bank of India is focusing on smoothing volatility rather than guiding the exchange rate, allowing the rupee to adjust more freely.
• India's trade deficit has structurally widened, expected to be around $30-35 billion, adding pressure to the balance of payments.
• A weaker rupee could benefit export-oriented and labor-intensive sectors by supporting earnings amidst high tariffs.

Why It Matters: Predicted rupee weakness affects your purchasing power and economic stability.