Rupee slide pressures Indian equities as 98/$ forecast looms

Monex Europe has forecast that the Indian rupee will weaken to 98 per US dollar by the end of 2026, a level that would mark a fresh record low for the currency. The projection underscores mounting pressure on the rupee, which has already been sliding amid a strong dollar and persistent trade deficits.

For stock market investors, a weaker rupee is a double-edged sword. It raises import costs for companies that rely on foreign inputs, squeezing margins in sectors such as oil and electronics. At the same time, a depreciating currency often triggers foreign portfolio outflows, as global investors seek to avoid forex losses. This dynamic can weigh on benchmark indices like the Nifty 50 and Sensex. For real-time levels on Indian equities, traders can check NowPrice's live stock quotes.

Looking ahead, the key question is whether the Reserve Bank of India will intervene to slow the rupee's decline or allow a gradual depreciation. Traders should watch for any shift in RBI policy, as well as upcoming US economic data that could further strengthen the dollar. The 98/$ level is now a widely watched target that may influence sentiment in Indian markets through the rest of the year.