India Faces Rupee (USD/INR) pause before renewed slide
|The Indian rupee (USDINR) has faced steady pressure in 2025 due to global uncertainty and rising import costs. Higher oil prices and reduced foreign investment have made the currency weaker. The Reserve Bank of India has limited its support, allowing more market-driven movement. As a result, the rupee has dropped closer to 91 against the U.S. dollar. This trend has raised costs for imported goods and added stress to inflation. Exporters benefit from a weaker rupee, but consumers feel the pinch. Businesses that rely on foreign parts or services also face higher expenses.
Looking ahead to 2026, experts expect the rupee to stay under pressure. If global interest rates remain high, foreign funds may continue to leave India. However, strong service exports and digital growth could help slow the decline. The RBI may act carefully to avoid sharp swings. If India boosts manufacturing and keeps inflation in check, the rupee could find more balance by year-end. Analysts also watch global oil prices and trade deals closely. These factors will shape how the rupee performs in the months to come.
Elliott Wave forecast: USD/INR monthly chart May 2025
In the last update, wave (v) of ((iii)) had reached 87.97, missing its target by 29 cents before reversing lower. Wave ((iv)) then corrected sharply, nearly hitting the 100% Fibonacci extension at 83.76, and rebounded with strength—suggesting that wave ((iv)) had likely completed. This setup pointed to a continued rise in USDINR through wave ((v)), with a projected target between 89.06 and 90.72, assuming no further extensions. Cue
Elliott Wave forecast: USD/INR monthly chart October 2025
Currently, the rupee is near to reach the extreme area to end wave ((v)) of 3. In that resistance zone, the dollar’s strength was expected to be rejected, marking the end of wave 3 and the beginning of wave 4. Then, that wave 4 would retest the support of wave ((iv)) before wave 5 resumed the bullish trend. This sequence was expected to confirm the broader upward structure and reinforce the long-term bullish outlook for USDINR. Let’s see if there is not an extension in this wave ((v)) of 3 to start a new pullback.
Elliott Wave forecast: USDINR Monthly chart October 2025 alternative
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