Rupee may appreciate against dollar in H1 FY27 as risks ease: Report

New Delhi, June 22 (IANS) Easing Middle East tensions and recent policy measures by the Reserve Bank of India and the government have eased near‑term stress on the Indian rupee, a report said on Monday.

The report from Elara Securities said the domestic currency could appreciate against the American dollar in H1 FY27, as current account pressures reduce and flows improve, keeping the rupee oscillating within a 93‑95 range.

If the US Federal Reserve raises rates, as expected with a 50 basis‑point hike in H2FY27, it could reinvigorate stress on emerging market foreign exchanges including INR and this could keep appreciation strength capped.

The report noted that policy intervention helped cap near-term and credited FX market stabilisation measures, tax relaxations for government bonds and incentives to attract debt FX inflows.

The landmark Income-Tax Ordinance of June 5, 2026, which made India's G-Sec investment tax-free for FPIs, has led to resumption of reasonable flows into the Indian debt market apart from moderation in the yields, the report noted.