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Indian Rupee (INR)

Indian Rupee (INR) News

India's currency, managed by the Reserve Bank of India.

What is Indian Rupee (INR)?

The Indian rupee (INR) is the official currency of India, the world's most populous country and fifth-largest economy. The Reserve Bank of India (RBI) actively manages INR through a "managed float" — intervening in FX markets to smooth volatility while letting market forces set the trend. USD/INR is the most-watched cross.

Why it matters for investors

Rupee moves affect India's import bill (especially crude oil — India imports ~85% of its oil), corporate earnings (IT exporters benefit from weak rupee; importers hurt), foreign portfolio inflows, and inflation. A stable rupee is a policy priority for RBI given oil import dependency.

Frequently asked questions

Why does INR usually weaken over time?

India's structurally higher inflation than the US gradually erodes purchasing power parity. Weakening of ~3-4% per year vs. USD is the long-term trend.

How does RBI defend the rupee?

Selling USD from FX reserves to absorb rupee selling pressure, and forward-market interventions. RBI has among the world's largest FX reserves to deploy.