Why the rupee may stabilise after recent volatility, according to Emkay Wealth

The Indian rupee could see a phase of near-term stability as the recent dollar strength appears to be short-lived, according to Emkay Wealth Management’s latest Press Navigator report.

Why the dollar surge may not last

Emkay noted that the dollar’s recent 1% rise was largely driven by temporary factors such as global trade uncertainties and ambiguous signals on US interest rates.

Over the past year, however, the greenback has weakened by about 4.8% against major currencies.

With benchmark US 10-year Treasury yields slipping below 4%, markets seem to have already priced in potential rate cuts, suggesting limited upside for the dollar from here.

How India’s external factors are shifting

The rupee, which touched ₹88.80 per US dollar in early October before recovering to ₹87.70 later in