Rupee's Depreciating Cycle Likely to Bottom Out Soon, Says Quant MF's Sandeep Tandon

Quant Mutual Fund Founder Sandeep Tandon expects that the Indian rupee's depreciating cycle against the US dollar will soon peak out. He sees the Indian currency gaining against the greenback from here on.

According to Tandon, the rupee will settle somewhere near 90-a-dollar mark in the near future.

The rupee slumped 77 paise to a record low of 89.48 against the US dollar on Nov 21. The currency lost ground against the US unit because the risk-off sentiment increased on concerns about technology stocks valuation.

In the recent past, IT stocks across different countries sharply gained as optimism over artificial intelligence prospect supported. However, soon investors turned wary about the high spending plans of major AI players, which stunted the rally.

Interestingly, the rupee depreciated at a time, when the dollar index corrected significantly. In September, the dollar index, which gauges the strength of six major currencies, fell to 96.22, the lowest level since April 4, 2022, according to data on Bloomberg.

The dollar index expected to remain under pressure with rising expectation of further rate cuts by the US Federal Reserve along with worries about economic growth.

The dollar index was trading at 99.59 as of 10:21 a.m.

In 2025 so far, the Indian currency declined 4.48% against the US dollar, marking so far the worst annual depreciation since 2022. The rupee slumped 11.30% against the US dollar in calendar year 2022.

In calendar year, the rupee reversed its position as one of the best performing to one of the worst performer currency against the greenback among its emerging market peers. The rupee recorded the most losses against the US currency after Argentina Peso and Turkish Lira, according to Bloomberg data.

The rupee was trading 89.46 a dollar as of 10:22 a.m. The currency settled at 89.31 against the US dollar on Thursday.