The rupee is weaker — and more stable — than ever
The INR has drifted past 90 to the dollar, yet its volatility is among the lowest of any emerging-market currency. Both facts matter.
Arjun Nair
5 min read
Two things are true about the rupee at once: it has never been weaker against the dollar, and it has rarely been steadier. Realised volatility on the INR is now among the lowest in the emerging-market complex — the fingerprint of a central bank managing the descent.
A managed descent
INR per USD, year-end
For exporters, the slow drift is a tailwind. For anyone paying for imported oil, electronics or a foreign education, it is a quiet annual tax. The data suggests the RBI’s priority is predictability over level — smoothing the path rather than defending a line.
Written by
Arjun Nair
Arjun writes on markets and corporate finance. Before journalism, he spent five years as a sell-side equity analyst.
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