Kolkata

S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), on Wednesday said the Indian rupee is likely to settle in the range of 92–93 against the US dollar, expressing confidence in the country’s economic strength and improving global conditions.

He noted that the currency had come under pressure in recent times due to global uncertainties, including tensions involving the United States and Iran, as well as outflows by foreign institutional investors. However, a temporary easing of geopolitical tensions has helped calm financial markets, reducing volatility in currencies, including the rupee.

“Despite recent pressures, the rupee is expected to stabilise around the 92–93 level. There is no need for concern,” Dev said on the sidelines of an event organised by the Bharat Chamber of Commerce.

The rupee had recently weakened past the 95 mark against the US dollar amid global headwinds.

Dev emphasised that India’s strong macroeconomic fundamentals and resilience position the country well to manage external shocks. He pointed out that India has adequate fiscal space, enabling continued spending on infrastructure and welfare even during periods of global uncertainty.

He also highlighted improvements in key indicators such as the debt-to-GDP ratio, along with ongoing reforms and technological progress, as factors likely to boost private investment and sustain economic growth.

On the external front, Dev said the current account deficit could rise to around 2 per cent of GDP from the present level of approximately 1.3 per cent, but added that this remains within a comfortable range.

He further described the decision of the Reserve Bank of India’s Monetary Policy Committee to keep interest rates unchanged as appropriate under current conditions.

READ MORE: Two-time world kickboxing champion Tajamul Islam is an ode to human spirit

Expressing optimism about the outlook, Dev said India could achieve economic growth of around 6.9 to 7 per cent in 2026–27, slightly higher than the central bank’s projection of 6.9 per cent, as the country continues its trajectory towards becoming a developed nation by 2047.