{
  "id": 8175458,
  "title": "Rupee isn’t done bleeding despite $250 bn defence",
  "url": "https://urgent.news/2026/09/18/rupee-isnt-done-bleeding-despite-250-bn-defence",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T01:25:42.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/markets/forex/rupee-may-need-to-fall-further-axis-bank/articleshow/134323626.cms"
  },
  "original_language": "en",
  "account": "Kolkata: India's currency, the rupee, appears poised for further decline despite an impressive $250 billion defense effort, according to Axis Bank's latest research. The trade-weighted real effective exchange rate (REER) index has plummeted to 91.75, a level not witnessed since the 2013 taper tantrum. The rupee has shed nearly 6% of its value this year alone.\n\nEconomist Tanay Dalal of the private sector lender predicts that depreciation to a new fair value may have already occurred, but warns of a potential further 10% weakening in the REER over the next year, given sustained terms of trade shocks and a projected 5% loss in relative AI productivity. Dalal suggests that upcoming shifts in terms of trade and productivity could drive additional fair value weakening.\n\nOne contributing factor may be the misalignment between neutral rates needed to balance domestic growth and inflation with global trends, Dalal notes. The Reserve Bank of India is believed to have sold $250 billion since mid-2023 to shore up the local currency, nearly double the inflows witnessed during the dedicated dollar-inflows program from June to August, as per Dalal's analysis.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}