Rupee down nearly 6% in 2026, further weakening possible: Axis Bank

The Indian rupee has depreciated by nearly 6% in 2026, according to Axis Bank. This decline indicates a weakening of the currency, which could have significant implications for trade and the economy. A further depreciation of the rupee is possible, as economists suggest that the real effective exchange rate may need to fall by up to 10% within the next year to address trade shocks and align with global trends.

Why it matters

The rupee's real effective exchange rate has fallen to a 2013 level. Further depreciation may be needed to address trade shocks.

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