The Indian rupee stabilized against the United States dollar in the first half of the year, supported by broad dollar weakness, the United Nations noted in its World Economic Situation and Prospects 2026. However, in the second half, the Indian rupee edged lower following stronger than-expected growth in the United States and ongoing trade negotiations. Portfolio outflows and higher United States tariffs added to depreciation pressures on the Indian rupee. Nonetheless, robust economic performance in India is expected to provide support for the country’s currency in the near term.