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Informist, Thursday, Apr. 23, 2026

--RBI: Rupee effective FX rate index 92.72 in Mar vs 93.99 in Feb 

--CONTEXT: Real FX rate index for trade-weighted, 40-currency basket 

MUMBAI – The rupee's real effective exchange rate, based on a basket of 40 currencies in terms of trade-based weights, fell for the fourth consecutive month in March, according to data released by the Reserve Bank of India Thursday. The rupee's real effective exchange rate index was at 92.72 in March, down from 93.99 in February. 

The print indicates the Indian currency is undervalued by over 8%. The rupee fell more than 4% against the dollar in March as the war between US and Iran broke out in the first week of the month itself, clouding the outlook for emerging market currencies. The dollar index, which measures the strength of the dollar against six major currencies, rose 2.2% in March. 

"In real effective terms, the Indian rupee depreciated in March due to depreciation of INR in nominal effective terms and relatively lower inflation in India vis-a-vis its major trading partners," the RBI staff said in the State of the Economy article.

The 40-currency basket includes currencies of Angola, Australia, Bangladesh, Brazil, Canada, Chile, China, Egypt, the European Union, Ghana, Hong Kong, Indonesia, Iran, Iraq, Israel, Japan, Kenya, Kuwait, Malaysia, Mexico, Nepal, Nigeria, Oman, Qatar, Russia, South Korea, Saudi Arabia, Singapore, South Africa, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, Turkey, Ukraine, the United Arab Emirates, the UK, the US, and Vietnam.  End

US$1 = INR 94.1050

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Kabir Sharma

Edited by Akul Nishant Akhouey

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