The rupee’s movement over the past four years has reflected a mix of fundamentals, Reserve Bank of India intervention and market sentiment, making it difficult to attribute currency moves to any single factor, according to a report titled ‘What drives the exchange rate?’ by Bank of Baroda.
Since the eruption of the Ukraine war in 2022, the rupee has moved from an average of Rs 74.44 per dollar in January 2022 to an average of Rs 95.47 per dollar in August 2026, a depreciation of around 28%.
