Indian rupee to remain on a weakening trajectory over the medium to long term, says TCG AMC CEO

Key Highlights

• Here are edited excerpts of the interview: Over the past three decades, the rupee has depreciated gradually against the dollar, with periods of steep declines particularly after economic crises, global financial events, or external pressure like oil prices.
• The widened current account deficit of India is contributing to a weaker bias for the rupee amid global dollar strength.
• In the short term, it’s very difficult to predict which way the rupee will move, but over the medium to long term, the currency is likely to remain on a weakening trajectory.
• Looking ahead to 2026, we remain constructive on the market, as we appear to be entering an earnings upgrade cycle, with upcoming data likely to reinforce this emerging trend.
• From their peak, valuations have moderated, but markets are neither expensive nor undervalued.