Rupee tops Asia’s worst performers listing with 9.9% slide in FY26

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Rupee tops Asia’s worst performers listing with 9.9% slide in FY26

Mumbai: The rupee was the worst performer in Asia in opposition to the US greenback in FY26, reveals an ET evaluation of 10 rival currencies, after the native unit misplaced 9.88% by a yr marked by report exits from Indian equities by abroad buyers amid a world scramble for dollar-based belongings. Opening the monetary yr at 85.59 per greenback, the rupee ended at 94.83.

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That is after the native foreign money touched a report low of 95.22/$ amid constant greenback demand all year long. International portfolio buyers pulled out a report ₹1.6 lakh crore, far exceeding withdrawals in FY22, knowledge from NSDL knowledge confirmed.

Unrelenting demand for {dollars} from overseas buyers compelled the Reserve Financial institution of India (RBI) to intervene available in the market by promoting {dollars} to forestall a pointy fall within the rupee.

The Japanese yen, which fell 6.27% in opposition to the greenback, was the second worst-performing Asian foreign money in FY26. Against this, the Malaysian ringgit gained 9.69% – the perfect performer on the regional leader-board.

Alok Singh, head of treasury, CSB Financial institution, expects the rupee to stay beneath strain within the half of FY27 earlier than the unit recovers a few of its losses and trades within the broad 91-94 per greenback band for the fiscal yr.
Bankers stated the newest RBI measures would assist the rupee. “Capping of banks’ internet open place by RBI will assist curb speculative trades and forestall a pointy depreciation within the rupee, however the near-term outlook is weak and just a little fuzzy because of the Iran battle, because the dollar-rupee price will correlate with what occurs there,” stated Alok Singh.
In a drastic measure to forestall a sharper fall within the rupee, RBI on March 27 requested banks to cap their internet open rupee positions within the onshore deliverable market to $100 million on the finish of every enterprise day, efficient April 10, far decrease than the 25% of whole capital restrict earlier. Regardless of this, the rupee fell to cross the 95 mark on the final day of buying and selling.
“For now, chances are high that the rupee might weaken beneath 95 per greenback towards 96 and even 97. Persistent greenback outflows and better oil costs have undoubtedly shifted the rupee band extra towards 92-93 per greenback, from the 89-90 anticipated earlier than this disaster,” Singh stated.

By way of FY26, RBI maintained that it intervened within the spot market to forestall volatility.