The rupee is likely to average around 96/USD in FY27, however, the outlook remains subject to key downside risks, including potential US dollar appreciation and a rate hike scenario, geopolitical developments, and movements in crude oil prices, according to a report by brokerage house Motilal Oswal.
The report highlighted that the rupee had weakened sharply during April-May 2026, hitting a low of 96.8/USD on May 20 amid concerns over rising crude oil prices, widening trade deficits, and sustained foreign portfolio outflows. However, it has since recovered about 1.3 per cent from its lows as of June 9, 2026, and averaged around 94.7/USD during 1QFY27 (April-June 9).
