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Currency Alert — June 2026
What this article covers: The Indian rupee hit an all-time low of 96.844 per dollar on May 20, 2026 (RBI reference rate). On June 3, a BofA Securities executive told Reuters the rupee could weaken to 98 per dollar by July. Yesterday, June 5, the RBI held its repo rate at 5.25% and eased FPI investment norms, causing the rupee to strengthen sharply to around 95.2. This is not an abstract forex concern. A weaker rupee raises your import costs, inflates foreign-currency debt repayments, widens India’s oil import bill, and feeds consumer inflation. This article explains precisely why the rupee is falling, what BofA and others are forecasting, and what every business and individual should do right now.
Table of Contents
- Quick Snapshot: The Full Picture in 2 Minutes
- Part I : Where the Rupee Stands TodayCurrent rate, all-time low, depreciation timeline 2024 to 2026
- Part II : The Three Forces Driving the FallIran-war oil shock, FPI outflows, RBI’s shifting stance
- Part III : What BofA Said and What It Actually MeansThe 98/dollar downside call vs the separate 86/dollar year-end recovery view
- Part IV : What Other Forecasters SayDBS, Standard Chartered, ANZ, MUFG, ING, Credit Agricole compared
- Part V : Impact Across the EconomyOil importers, IT exporters, students, NRIs, inflation, government finances
- Part VI : What Could Reverse the Trend?
- Practical Action Checklist
- Frequently Asked Questions (FAQs)
Quick Snapshot: The Full Picture in 2 Minutes
Think of the rupee like a shopkeeper’s purchasing power for everything India buys from the world. When the rupee is strong, say at 83 per dollar, India can buy a barrel of oil for roughly Rs 6,890. At 96, that same barrel costs Rs 9,600 or more. India imports about 85% of its crude oil. The moment oil prices spike and the rupee falls simultaneously, the country faces a double hit: more dollars needed per barrel, and fewer rupees worth per dollar.
That is exactly what happened. In late February 2026, US-Israel military operations against Iran disrupted oil flows through the Strait of Hormuz, through which roughly one-fifth of global oil trade passes. Brent crude, which was near $80 at the start of 2026, surged past $113 in March and April. Foreign investors accelerated their exit from Indian equities and bonds. The rupee cracked through 90, then 93, then 96.
The Kitchen Table Example: What the Depreciation Actually Costs
Petrol at the pump: India’s retail fuel price reflects both Brent crude and the exchange rate. When the rupee was at 83 and Brent at $80, the base cost calculation per litre was very different from today’s Brent near $95 and rupee at 95.74. Even with government tax buffers, the underlying import cost per litre has risen sharply. The fiscal burden on Oil Marketing Companies and the government subsidy account compounds with every rupee that falls.
A parent sending a child to a UK university: Annual fees of GBP 20,000 cost roughly Rs 21 lakh when the rupee was near 83. At 95.74, the same fees cost approximately Rs 24.4 lakh, using current GBP/INR cross rates. That is Rs 3.4 lakh more per year from the same foreign invoice, with no change in the actual course cost.
An importer of electronics components: A $100,000 purchase order cost Rs 83 lakh at 83 per dollar. At 95.74, it costs Rs 95.74 lakh. The same goods, 15.3% costlier in rupee terms. For businesses with thin margins, that difference can eliminate profitability entirely.
96.844
All-time INR low vs USD, May 20, 2026 (RBI reference rate)
~95.2
USD/INR after RBI June 5 announcement; strengthened from 95.74 close of June 4
98
BofA Securities downside target by July 2026 (Reuters, June 3, 2026)
$27B
FPI outflows from Indian equities in 2026 so far
$40B+
RBI forex market intervention since H2 2025
~$95
Brent crude as of June 6, 2026 ($94.81); eased sharply from March-April peak above $113
Part IWhere the Rupee Stands Today
The Depreciation Timeline: A Multi-Year Slide
The rupee’s fall has not been sudden. It has been a sustained multi-year depreciation, each phase triggered by a different shock, each recovery incomplete.
| Period | USD/INR Level | Key Driver | Status |
|---|---|---|---|
| October 2022 | 83.00 | FPI outflows; global dollar strength post-Fed rate hikes | Record low then |
| October 2024 | 84.10 | FPI equity selloff; rising oil price concerns | New record low |
| December 2024 | 85.27 | Dollar index near 2-year highs; FPI outflows continuing | New record low |
| January 2026 | ~89.88 | US-India trade uncertainty; dollar strength; RBI intervention | Further weakness |
| March 23, 2026 | 93.94 | Iran war begins late February; oil shock; FPI retreat accelerates | Historic low at the time |
| May 20, 2026 | 96.844 | Hormuz closure risk; Brent $113+; record FPI outflows | All-time low |
| June 4-5, 2026 | 95.74 (June 4 close); ~95.2 (June 5 intraday post-RBI) | Oil eases toward $95; RBI holds rate at 5.25%, eases FPI norms, rupee strengthens 50 paise | Recovering from peak |
The rupee has depreciated roughly 6% since January 1, 2026 alone, making it Asia’s worst-performing currency this year. From 83 in late 2022 to 95.74 today, the cumulative fall exceeds 15% over roughly three and a half years.
The RBI's Role & Latest Action (June 5, 2026): On June 5, the RBI MPC held the repo rate unchanged at 5.25% for the third consecutive meeting and maintained a neutral stance. Critically, it also announced eased FPI investment norms in government securities and raised NRI/OCI equity investment limits. The government simultaneously announced tax exemptions for foreign investors in Indian bonds. These measures are specifically designed to attract dollar inflows and support the rupee. Following the announcement, the rupee strengthened sharply by 50 paise to ~95.24 intraday. However, the RBI has also made clear it does not target any specific rupee level or band. Since H2 2025, the RBI has deployed over $40 billion in forex intervention to slow the rupee's fall.
Part IIThe Three Forces Driving the Fall
Force 1: The Iran War Oil Shock
India imports approximately 85% of its crude oil, making it the world’s third-largest oil importer and one of the most vulnerable major economies to an energy price shock. All oil imports are settled in US dollars. When crude prices rise, India must buy significantly more dollars to pay for the same or higher volume of crude. That increased demand for dollars directly pressures the rupee.
US-Israel military operations against Iran began in late February 2026. The Strait of Hormuz, through which roughly one-fifth of global daily energy flows pass, came under effective closure. Brent crude, trading near $80 at the start of 2026, surged past $113 per barrel by late March and touched $114.44 in early May. By early June 2026, Brent has eased to around $95 as ceasefire talks showed some diplomatic activity, though no resolution has been confirmed.
The Oil-Rupee Arithmetic
India’s oil import bill was roughly $145 billion per year when Brent averaged $80. At Brent $95-100 (current range), that same volume costs closer to $175-180 billion annually. The additional dollar demand to fund this gap flows directly into the forex market, weakening the rupee.
Quantitatively, research from the Observer Research Foundation (ORF) and multiple economists estimates that a $10 per barrel increase in crude prices widens India’s current account deficit by approximately 40-50 basis points of GDP. Brent rose by over $35 from its January 2026 baseline to the March-April peak. Even at today’s $95 level, it remains $15-20 above the start of the year, implying a persistent CAD widening of 60-100 basis points compared to early-year assumptions.
Force 2: Massive FPI Outflows
Foreign Portfolio Investors (FPIs) are the largest marginal buyers of Indian stocks and bonds. When they sell, they convert rupees back into dollars to repatriate funds. This creates direct dollar demand and rupee supply in the forex market, pushing USD/INR higher.
In 2026, FPI outflows from Indian equities have crossed approximately $27 billion. This surpasses the previous year’s outflows. In May 2026 alone, FPIs withdrew Rs 27,048 crore from Indian equities. FPI outflows from both equities and bonds in 2026 have crossed Rs 2.2 lakh crore in total. The causes are interconnected: US bond yields near 5% make dollar assets relatively attractive; geopolitical uncertainty triggers risk-off sentiment globally; and a weakening rupee itself reduces dollar-adjusted returns for foreign investors, creating a self-reinforcing cycle.
The Self-Reinforcing Trap: A weaker rupee reduces dollar-adjusted returns for FPIs holding Indian assets. Lower dollar returns trigger more selling. More selling weakens the rupee further. This loop accelerated sharply between March 23 (when the rupee was at 93.94) and May 20 (when it hit 96.844), a fall of nearly 3 rupees in under two months.
Force 3: RBI’s Shifting Stance and Reduced Firepower
For much of the past decade, the RBI defended the rupee using its foreign exchange reserves. Those reserves peaked above $680 billion in 2024. After spending over $40 billion on intervention since H2 2025, the buffer has shrunk. The RBI has also signalled a shift toward allowing greater two-way movement in the exchange rate, intervening to prevent disorder rather than to defend any specific level. The practical effect: the floor under the rupee is lower than markets previously assumed.
| Pressure Point | Current Status (June 2026) | Direction for Rupee |
|---|---|---|
| Brent crude oil price | Near $95/barrel; eased from $113+ peak but still elevated vs Jan 2026 (~$80) | Negative (ongoing) |
| FPI equity outflows in 2026 | $27 billion; Rs 2.2 lakh crore total outflows | Negative |
| US bond yields | Near 5%; reduces attractiveness of EM assets including India | Negative |
| Strait of Hormuz / Iran war | Ceasefire talks ongoing; no confirmed resolution; fragile situation | Uncertain |
| RBI forex intervention | $40B+ deployed; reserves reduced from $680B+ peak | Partially cushioning |
| India GDP growth (FY26) | 7.6% (revised upward from 7.4% advance estimate); India fastest-growing G20 economy | Supportive of medium-term view |
| US-India trade deal | Discussed; not yet confirmed; outcome could shift FPI sentiment | Supportive if confirmed |
Part IIIWhat BofA Said and What It Actually Means
The June 3 Reuters Statement: Exact Context
On June 3, 2026, Reuters reported that David Hauner, head of global emerging markets fixed income strategy at BofA Securities, stated the rupee could weaken to a record low of 98 against the US dollar by July, driven by the energy shock from the Middle East crisis. At the time of the statement, the rupee was trading at approximately 95.77 per dollar.
Hauner also stated that he does not see an immediate need for a rate hike by the RBI, but expects 25 basis-point increases each in October and December 2026. Crucially, he does not expect the US Federal Reserve to raise rates this year. On recovery, Hauner expects foreign inflows to improve once energy supplies normalise, with the rupee likely recovering to around 93-94 against the dollar over the next 12 months.
Important Distinction: Two Separate BofA Views. The 98/dollar call is Hauner’s near-term downside forecast from June 2026, tied to the sustained oil price shock. A separate BofA Securities report from December 2025 projected the rupee could appreciate to 86 per dollar by end-2026, based on expected dollar weakness and a potential US-India trade deal. That December report was written before the Iran war began. These are two different analysts, two different timeframes, and two very different macro assumptions. They should not be conflated into a single “BofA view.”
What 98 Would Actually Mean for You
Moving from approximately 95.2 (post-RBI June 5 level) to 98 represents a further 2.9% depreciation. From the June 4 close of 95.74, it would be a 2.4% move. The direction is what matters. In rupee terms, the consequences compound quickly on every foreign-currency transaction:
| Transaction / Obligation | Cost at Rs 95.74 | Cost at Rs 98 | Additional Rupee Outgo |
|---|---|---|---|
| $1 million import order | ~Rs 9.52 crore (at 95.2) | Rs 9.80 crore | ~Rs 28 lakh more |
| $30,000 annual university fees (USD) | ~Rs 28.56 lakh (at 95.2) | Rs 29.40 lakh | ~Rs 84,000 more per year |
| GBP 20,000 university fees (using approx GBP/INR cross) | ~Rs 24.4 lakh | ~Rs 25 lakh | ~Rs 60,000 more per year |
| $100 million corporate USD debt repayment | ~Rs 952 crore (at 95.2) | Rs 980 crore | ~Rs 28 crore more |
Every Indian company with dollar-denominated imports, every student studying abroad, every individual with a foreign subscription or travel plan, and the government’s own fuel subsidy calculations all get repriced if the rupee weakens to 98.
Part IVWhat Other Forecasters Say
Forecasts on the rupee are genuinely divided. The range of views reflects real uncertainty, not analytical disagreement. Different institutions are essentially betting on different oil price and geopolitical trajectories.
| Institution | USD/INR View | Timeframe | Core Rationale | Bias |
|---|---|---|---|---|
| BofA Securities (Hauner, June 2026) | 98 downside; 93-94 recovery | July 2026 near-term; 12 months for recovery | Energy shock drives near-term weakness; energy normalisation drives recovery | Near-term bearish |
| DBS Bank | 95 to 100 range | Rest of 2026 | Revised up from 90-95; war-related oil and FPI dual pressure | Bearish |
| Standard Chartered | ~93 | Year-end 2026 | Rupee recovers as external pressures ease in H2 | Relatively bullish |
| ANZ | ~93 | Year-end 2026 | US-India trade deal could improve inflows and stabilise currency | Relatively bullish |
| MUFG | ~93 | Year-end 2026 | India fundamentals intact; external shocks viewed as temporary | Relatively bullish |
| BofA Securities (Dec 2025 report) | 86 | End-2026 (written pre-Iran war) | Dollar weakness + US-India trade deal + improved inflows | Bullish (pre-war scenario) |
| Credit Agricole | 86 to 88 | End-2026 | Trade tension easing and oil price decline support recovery | Bullish |
| ING | ~87 | End-2026 | Lower tariff deal with US; upside potential for INR in H2 2026 | Bullish |
How to Read This Divided Picture
The bulls (Standard Chartered, ANZ, MUFG, Credit Agricole, ING) are saying: India’s economy is fundamentally strong. FY26 GDP growth came in at 7.6%, making India the fastest-growing G20 economy for the fourth consecutive year. Domestic consumption is resilient. The current pressures are exogenous shocks, not structural deterioration. If oil normalises and a US-India trade deal materialises, the rupee should recover meaningfully.
The bears (BofA near-term, DBS) are saying: the shocks are real, sustained, and damaging. FPI outflows are at record levels. The RBI has spent over $40 billion defending the currency and has less room to do so again. The oil price recovery depends on an Iran ceasefire that remains fragile and unconfirmed.
Both views can coexist: weak near-term, then recovery. What separates the camps is the timeline and depth of near-term weakness. The 98 scenario and the 93 year-end scenario are not incompatible; a temporary touch of 98 in July followed by recovery to 93-94 by December is consistent with multiple forecasters’ central cases.
Part VImpact Across the Economy
Who Gets Hurt
| Sector / Group | How Rupee Weakness Hurts | Severity |
|---|---|---|
| Oil Marketing Companies (OMCs) | Every Rs 1 fall vs the dollar adds significantly to the annual oil import bill. Under-recoveries widen if retail fuel prices are not raised commensurately. | Very High |
| Electronics and machinery importers | Input costs rise in rupee terms. Margins compress unless costs are passed on to customers. | High |
| Students studying abroad | Every Rs 2 fall per dollar costs a student on a $30,000-per-year programme approximately Rs 60,000 more annually. | High |
| Corporates with unhedged foreign-currency debt | Rupee repayment cost rises proportionally to depreciation. Unhedged exposure is directly and immediately painful. | High |
| All consumers (inflation) | Import-led inflation: fuel, electronics, edible oils (roughly 60% of consumption imported), fertilisers all carry dollar-denominated cost components. Rupee weakness feeds CPI. | Medium-High |
| Government fiscal position | Higher rupee cost of oil subsidies; increased cost of external debt servicing. | Medium |
Who Benefits
| Sector / Group | Benefit from Rupee Weakness | Magnitude |
|---|---|---|
| IT and Software exporters | Dollar revenues translate to more rupees. Revenue realisation improves for every contract billed in USD, GBP, or EUR. | Significant |
| Pharma exporters | Export realisations improve in rupee terms. Partially offset by higher cost of imported active pharmaceutical ingredients (APIs). | Moderate |
| Textile and garment exporters | Indian goods become relatively cheaper for foreign buyers, potentially boosting order volumes. | Moderate |
| NRIs sending remittances | More rupees per dollar sent home. India receives roughly $120 billion in annual remittances; each percentage point of rupee depreciation boosts the rupee value of these transfers noticeably. | Moderate |
The Net Effect: India is a net oil importer and, in the current environment, a net capital exporter (FPIs are leaving). The negative effects of rupee weakness, costlier oil, inflation, and reduced investor confidence, outweigh the export benefits in the short run. The IT and export boost is real and matters for those sectors. However, it does not fully offset the macroeconomic headwinds from higher energy costs and record capital outflows.
Part VIWhat Could Reverse the Trend?
The rupee’s trajectory is not locked in at 98. There are specific, identifiable catalysts that could reverse the fall quickly. Each comes with a condition attached.
1Iran ceasefire confirmed and Hormuz reopens: Brent drops toward $75-80; oil import bill shrinks sharply
2US-India trade deal confirmed: tariff uncertainty removed; FPI inflows return to equities and bonds
3Fed rate cuts: dollar weakens globally; all emerging market currencies including the rupee benefit
4RBI June 5 measures already in motion: eased FPI norms + NRI limits + government bond tax exemption attracting dollar inflows
5FDI inflows recover: net FDI near zero in 2026; even partial recovery improves dollar supply
The Most Likely Scenario for H2 2026
The base case held by the majority of institutional forecasters is that near-term pressure persists through July, with USD/INR potentially testing the 96-98 range depending on oil trajectory. The current partial easing of Brent to ~$95 from its $113+ peak, combined with the RBI's June 5 announcement of eased FPI norms and capital flow incentives, has given the rupee meaningful breathing room. After the RBI announcement on June 5, the rupee strengthened 50 paise to ~95.24 intraday. The all-time low of 96.844 has not been retested since May 20.
From Q3 2026 onwards, if the Iran situation de-escalates or a genuine ceasefire holds and Hormuz fully reopens, oil prices are expected to fall more meaningfully toward $80-85. At that point, India’s current account pressure eases, FPI outflows are expected to moderate, and the rupee could recover toward the 93-94 range that Hauner himself projected over the next 12 months. The downside risk is a return to full conflict that pushes Brent back above $110 through year-end. In that case, the 97-100 range becomes more credible and RBI faces increasingly difficult choices between defending the currency and supporting growth.
Practical Action Checklist: What You Should Do Now
- If you are a business with significant dollar-denominated imports: Review your hedging position now. If you are unhedged on dollar payables expected over the next 3-6 months, consult your banker about forward contracts or options. A move from 95.74 to 98 raises your import cost by 2.4% with no warning and no recourse after the fact.
- If you have a child studying abroad or are planning foreign education: Consider locking in foreign currency requirements for the next academic year using a forward booking through your bank. Waiting for the rupee to recover carries real risk if BofA’s July forecast proves correct.
- If you are an IT or software exporter: This is a revenue tailwind. Dollar revenues convert to more rupees today than they did a year ago. Consult your treasury team on the timing of larger conversions and whether partial holding of dollar balances makes sense given the current trajectory.
- If you are an individual planning international travel: Buy your foreign currency in tranches now rather than waiting. Currency timing is difficult; buying in parts reduces risk. Avoid airport exchanges; use your bank or an RBI-authorised forex dealer for better rates.
- If you hold unhedged foreign currency loans: Review repayment schedules now. Your rupee cost of repayment has risen by over 15% since 2022. If major repayments fall in July-September, consider pre-payment or partial hedging to lock in current rates rather than taking 98 risk.
- For NRIs considering sending money home: Current rates are historically favourable for you. If you have been waiting to make large transfers, the window of elevated rates may not last indefinitely if a ceasefire or trade deal materialises in H2.
Closing Thoughts
The BofA 98-per-dollar call is not alarmism. It is a credible analyst, David Hauner at BofA Securities, putting a near-term number on a very real combination of pressures: an oil shock from the Iran war, record FPI outflows, and an RBI with less intervention firepower than before. Whether the rupee actually touches 98 by July depends on whether Brent crude stays elevated or eases further, and whether ceasefire talks produce anything concrete.
What is certain is that India's macroeconomic fundamentals remain strong. FY26 GDP growth came in at 7.6%, domestic consumption is resilient, and the RBI acted decisively on June 5 with rate stability and new capital flow measures. These steps are not a silver bullet against an oil-driven shock, but they signal that India's policy response is active and targeted. The currency pressure is real but it is exogenous, driven by global war and oil, not by internal weakness. That matters for the recovery thesis.
The practical response is not panic. It is preparation. Hedge dollar exposures, review foreign-currency obligations, and build a buffer into every transaction that crosses a border. Currency markets move fast. The time to act is before the rate moves, not after.
Frequently Asked Questions (FAQs)
Yes, with important context. On June 3, 2026, Reuters reported that David Hauner, head of global emerging markets fixed income strategy at BofA Securities, stated the rupee could weaken to 98 against the dollar by July, driven by the Middle East energy crisis. The rupee was then trading at approximately 95.77. This is a downside scenario, not a central case for the full year. Hauner also stated that once energy supplies normalise, inflows to India should improve and the rupee is likely to recover to 93-94 over the next 12 months. Separately, a BofA Securities report from December 2025 (written before the Iran war) projected the rupee could appreciate to 86 by end-2026. That is a different analyst, a different timeframe, and a fundamentally different macro scenario. Both are genuine BofA views; they should not be treated as contradictory since they were produced under entirely different oil price assumptions.
As of June 4, 2026, the RBI reference rate stood at 95.743 per US dollar. The all-time low on record was 96.844, reached on May 20, 2026 (RBI reference rate per CEIC data). The rupee has recovered partially from that low, helped by a partial easing in Brent crude prices from their March-May peak of $113+ toward $95, and by RBI intervention via state-owned banks. The currency remains under pressure, however, and has not returned to pre-March 2026 levels.
India imports roughly 85% of its crude oil, making it structurally one of the most oil-dependent major economies in the world. All crude oil purchases require US dollars. When oil prices rise sharply, India must buy significantly more dollars to fund the same or larger volume of crude imports. This directly increases demand for dollars in the domestic forex market and weakens the rupee. Additionally, India runs a structural merchandise trade deficit, meaning it already imports more goods than it exports in value terms. An oil shock turns a manageable deficit into a large one very quickly, putting further pressure on the current account and the currency. Countries like Japan also import oil heavily, but Japan runs a structural current account surplus and holds massive overseas asset positions that provide a natural buffer. India does not have that structural cushion.
The RBI has multiple tools: selling dollars from reserves, raising the repo rate to attract capital inflows, tightening rupee liquidity to raise the cost of speculative short rupee positions, and administrative measures on import duties. However, the RBI has already spent over $40 billion in intervention since H2 2025, meaningfully reducing its available firepower. A repo rate hike, which Hauner expects in October and December, carries a growth tradeoff. The most effective cure for the rupee is an oil price decline or renewed capital inflows, both of which are outside the RBI’s direct control. The RBI can slow the pace of depreciation and reduce volatility, but it cannot permanently prevent the currency from reflecting adverse external fundamentals. On June 5, the RBI announced eased FPI investment norms in government securities, raised NRI/OCI equity limits, and the government announced tax exemptions for foreign bond investors, all specifically to attract dollar inflows and reduce selling pressure on the rupee. These measures caused the rupee to gain 50 paise to ~95.24 on June 5. Whether these measures are enough to prevent 98 depends entirely on whether oil prices hold near current levels or re-accelerate. If oil reaccelerates toward $110+, the RBI faces the same limits again.
Through the “exchange rate pass-through” mechanism. India imports not just crude oil but also edible oils (roughly 60% of consumption is imported), fertilisers, electronics components, and capital goods. When the rupee weakens, all of these cost more in rupee terms. Higher fuel costs raise transportation and logistics costs across virtually every supply chain. These input cost increases feed into retail prices over 3-12 months, pushing the Consumer Price Index (CPI) higher. The RBI has historically estimated that a 5% rupee depreciation adds approximately 15-20 basis points to CPI over a 12-18 month horizon through direct channels, with additional indirect effects through energy costs. The rupee has depreciated over 6% since January 2026, and is down over 15% from 2022 levels. The cumulative inflationary pressure is material, even though headline CPI for FY26 was running at just 2.1% due to earlier favourable conditions.
Most institutional forecasters do not expect a recovery to 83-84 in any near-term horizon. Even the most bullish pre-war forecasts (BofA December 2025, Credit Agricole, ING) projected 86-88 as a recovery target by end-2026, and those forecasts were made before the Iran war materially changed the oil price outlook. Post-war, the recovery consensus has shifted to 93-94 as the 12-month target. A return to 83-84 would require a combination of a sharp and sustained oil price decline, very large FPI inflows, a confirmed and comprehensive US-India trade deal, and significant Fed rate cuts. While each is individually possible, their simultaneous occurrence in the next 12-18 months is unlikely. The structural direction of the rupee over many years reflects India’s historically higher inflation differential versus the US, meaning nominal depreciation over long periods is normal and expected by most economists.
Given the current currency outlook, waiting for the rupee to recover before buying foreign currency carries meaningful risk. The most practical approach is to convert a portion of your required foreign currency now at current rates, rather than converting the full amount at one time near departure. This strategy of buying in tranches reduces the risk of a scenario where the rupee reaches 97-98 in July before easing again. Most banks and RBI-authorised forex dealers offer forward contracts that allow you to lock in an exchange rate for delivery on a future date; this removes uncertainty entirely for amounts you know you will need. Consult your bank’s forex desk for individual customer options. Do not leave the full conversion to the week before departure.
Disclaimer:This article is for informational and educational and informational purposes only.
