Indian rupee Could Fall to ₹81 a Dollar

As if an ever-increasing rate of inflation and rising gasoline prices weren't bad enough, experts now predict that the rupee will fall even further, to as low as 81 in the next 5-6 months.

Despite the Indian central bank's conviction and actions to prevent a freefall, this is the case. To keep the rupee from falling, the central bank has been fighting fires. It used India's massive forex reserves to keep the rupee from falling below $77.5 against the US dollar in May.

Shaktikanta Das, the governor of the Reserve Bank of India, has also stated that the bank will not allow the rupee to fall too far. As of June 6, the rupee stands at ₹77.66 against the US dollar. Experts believe the situation will deteriorate significantly in the coming months, but some argue that this is merely a "modest depreciation."

“A grind higher for USD/INR from here toward 80 in the next couple of months is not a big ask. Nor do I think ₹80 is a runaway depreciation by any metric. It’s a very modest adjustment of a currency with deteriorating fundamentals,” said Rohan Arora, emerging markets Asia strategist at UBS.