Rupee to remain weak in 2022

The Indian Rupee declined nearly 2.5 per cent in 2021. On January 1, 2021, it stood at Rs 73.09 against dollar as compared to Rs 74.99 on December 26, 2021. Fitch Solutions recently revised its forecast for the Indian Rupee to average Rs 76 per dollar in 2022, slightly stronger than its previous outlook of Rs 76.50. According to the agency, the Rupee will mostly trade sideways in the coming quarters.

In the long term, it expects the Indian currency to remain weak - it may average Rs 78 in 2023. However, any depreciation will be gradual given strong economic fundamentals, it added. In the current year, the rupee has averaged around Rs 73.90.