Market News
BofA Securities forecasts Rupee at 98/USD by July due to energy crisis
Published 2026-06-04 · Bazaar Watch Research
- BofA Securities predicts the Indian rupee could fall to a record low of 98 against the US dollar by July.
- This depreciation is primarily attributed to the ongoing Middle East energy shock impacting domestic assets.
- The Middle East energy crisis is expected to increase India's import bill, putting pressure on the rupee.
- Significant withdrawals of funds by foreign investors have further contributed to the currency's weakness.
- Indian importers and companies relying on crude oil or imported raw materials will face higher operational costs.
- Exporters, particularly IT and pharmaceutical sectors, may benefit from increased competitiveness due to a weaker rupee.
- Consider diversifying your portfolio with export-oriented companies or those with substantial foreign currency earnings.
- Evaluate your exposure to import-heavy sectors and companies vulnerable to rising global energy prices.
