Richard Yetsenga, Group Chief Economist at ANZ Research, believes the Indian rupee will remain weak in 2025. But he expects 2026 to be a much better year for the currency.

India’s economy could remain one of the fastest-growing in the world as foreign investors return and inflation pressures ease globally, according to Yetsenga.

Yetsenga said the global rate environment will continue to shape capital flows. The US Federal Reserve is expected to deliver a 25 basis points rate cut, but he noted this view developed recently. “Two weeks ago that wasn’t the case. The market was very much at sixes and sevens about what the Fed would do,” he added.

Also Read | India economy, rupee forecast, US Fed rate cut, India GDP growth, FPI flows, stock market outlook 2026, global economy, inflation out

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