Rupee down nearly 6% in 2026, further weakening possible: Axis Bank
RBI moved lower.
· Economic Times Markets
The rupee may need further depreciation to address trade shocks. Its real effective exchange rate has fallen to a 2013 taper tantrum level. Economists suggest a potential 10% weakening of the REER within a year. Global trends and domestic rates might be misaligned, causing currency pressure. The Reserve Bank of India has sold significant dollars to support the rupee.
The analysis
RBI reported movement of 6% and 10%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +0.1% on the day at ₹1,243.30, and has returned -4.9% over three months. It sits 11% below its 52-week high. The banks sector has moved -1.7% over the same period, so Axis Bank is running 3.2 points behind its peers.
For Axis Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is AXISBANK.
- Sector exposure: Banks.
In this story
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