India's currency expected to depreciate despite central bank intervention

If RBI intervention succeeds in stabilizing the rupee around current levels or stronger, it would likely reduce hedging costs for Indian importers and could support inflows into rupee-denominated assets by signaling effective policy defense.

A prolonged stalemate where the rupee drifts gradually weaker without sharp moves would plausibly keep Indian equity and bond markets in a state of managed uncertainty, with foreign investors pricing in steady currency drag on returns.

Rupee weakness accelerating past 100 per dollar despite RBI action would likely increase import inflation pressures, widen the current account deficit narrative, and potentially trigger capital outflows as foreign investors reassess the central bank's capacity to defend the currency.