The Indian rupee is poised to trade within Rs 90.40-91.20 per US dollar next week, supported by continued equity inflows and structural positives, per a Union Bank of India (UBI) report. Sustained foreign investments could push the INR stronger toward Rs 90.10, with Rs 90.40 as key support and resistance at Rs 90.90-Rs 91.20.
UBI highlights AI’s transformative role in India’s services exports, forecasting higher-value digital, cloud, and AI offerings to enhance competitiveness and attract USD inflows, a long-term rupee tailwind. However, near-term IT outsourcing transitions may spark volatility via FPI flows and earnings sentiment.
Last week, the rupee held steady at Rs 90.60-90.70 despite a USD 34.68 billion trade deficit and FII outflows, backed by strong fundamentals. India’s forex reserves hit a record USD 725.73 billion, cushioning external shocks and bolstering investor confidence.
The report notes that the finalized India-US Bilateral Trade Agreement (BTA) has meaningfully shifted rupee thresholds, aiding stability. While global factors pose risks, capital inflows, services strength, and reserves should sustain INR support.
This outlook reflects optimism in equity markets and tech-driven exports amid broader currency pressures.
Rupee Seen Steady in Rs 90.40-91.20 Band Next Week: UBI Report
