MUFG analyst Michael Wan has issued a fresh outlook for the Indian rupee, forecasting gradual appreciation against the US dollar over the near term before a reversal in 2026. The bank expects USD/INR to decline steadily over the next three to six months, targeting the 94.00 level as the rupee strengthens. However, this appreciation is expected to be temporary, with MUFG projecting a rebound back to 96.00 during the next calendar year.
The forecast suggests a trading range between 94.00 and 96.00 for the pair over the medium term, indicating moderate volatility ahead. Traders positioning in rupee-denominated assets or dollar-rupee pairs should anticipate near-term rupee strength followed by renewed dollar demand in 2026. The outlook impacts Indian exporters who may face margin pressure during the strengthening phase, while importers could benefit from improved purchasing power in coming months.
FXnCO Insight
Traders should consider short-term long rupee positions targeting 94.00, but prepare to reverse as MUFG’s 2026 rebound scenario suggests limited downside for USD/INR beyond that level.
Source: FXStreet