Indian Rupee Valuation Hits Decade Low Amid Iran War
The rupee real effective exchange rate fell to 92.72 in March as rising oil prices and foreign selling pressured the currency. Analysts expect near-term weakness.
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The trade-weighted valuation of the Indian rupee has plummeted to its lowest level in over a decade, driven by geopolitical tensions and significant capital flight. According to the latest bulletin from the central bank of India, the 40-currency real effective exchange rate (REER) dropped to 92.72. This figure sits substantially below the long-term average of 98.25, indicating that the currency is deeply undervalued against historical benchmarks.
