Rupee likely to bounce back strongly
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New Delhi: The Indian rupee, depreciating mainly due to 50 per cent tariff imposed on India by the US, is likely to bounce back strongly in the second half of the next fiscal, an SBI research report said on Wednesday.
Since April 2, 2025, when the US announced sweeping tariff hikes across economies, the Indian rupee (INR) has depreciated by 5.7 per cent against $ (most amongst the major economies), notwithstanding sporadic phases of appreciation owing to optimism over the US-India trade deal. While INR is the most depreciated currency, it is not the most volatile, said the report from SBI’s Economic Research Department.
“This clearly indicates that the 50 per cent tariff imposed on India is one of the major factors behind the current phase of rupee depreciation,” it said. It further said that the days of largesse flows is over as geopolitical uncertainties have taken centre stage.
