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Economy· August 17, 2026 at 02:57 a.m.

Indian Rupee Expected to Weaken Following Central Bank's Move to Limit Dollar Inflows

Indian Rupee Expected to Weaken Following Central Bank's Move to Limit Dollar Inflows

Key takeaways

  • RBI restricts dollar inflows through LRS
  • Indian Rupee expected to depreciate
  • Temporary measure aimed at maintaining foreign exchange market stability

The Indian Rupee is anticipated to depreciate after the Reserve Bank of India (RBI) decided to restrict dollar inflows through a specific window. This move aims to curb speculative attacks on the currency, but it may lead to increased volatility in the foreign exchange market.

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