Rupee to Stay 91-92/USD Till FY26-End; RBI to Curb Swings: Axis Bank Economist

• Axis Bank's Neelkanth Mishra expects the rupee to trade around 91-92/USD in the near term, with RBI intervening to manage volatility.
• Despite recent depreciation past 91, Mishra states there are no fundamental concerns, citing comfortable current account and 10-year low REER.
• RBI's mandate is to contain volatility, not defend a specific level; intervention is likely if quarterly depreciation exceeds a tolerable range.
• Recent rupee weakness is attributed to speculative positioning and global factors, not a loss of foreign investor confidence in India.
• No further RBI rate cuts are expected as growth is above trend and the central bank maintains a neutral stance.

Why It Matters: Rupee stable around 91-92/USD, RBI to manage volatility; no fundamental concerns for India's economy.