Indian rupee crashes past 94 against dollar for first time
What's the story
The Indian rupee has breached the 94 mark against the US dollar. The currency opened at a level of 94.15 against the greenback on Friday, extending its losses from Wednesday when it had closed at 93.97. Trading in the currency market resumed today after a holiday on Thursday.
Market impact
Goldman Sachs downgrades India rating
Goldman Sachs has downgraded its rating on the Indian market to "marketweight" from "overweight." The brokerage also lowered its price target on the Nifty 50 index. The changes come after the fallout of the Iran war and rising oil prices, which have prompted Goldman Sachs to raise inflation estimates by 70 basis points and cut India's GDP growth forecast.
Economic forecast
RBI expected to hike rates twice in 2026
Goldman Sachs is now factoring in two rate hikes by the Reserve Bank of India (RBI) in 2026, each worth 25 basis points. Along with the rupee's decline, the Government 10-year bond yield has also weakened to 6.94% from Wednesday's close of 6.86%. This comes as part of a broader economic outlook amid global market fluctuations and local currency performance.