MUFG Bank forecasts the Indian Rupee could weaken past 90 against the US Dollar by 2026, citing potential impacts from tariffs and a slump in Foreign Direct Investment. Despite this outlook, the bank notes that current Rupee valuations are attractive and that ongoing structural reforms, such as GST simplification and labor code consolidation, could support growth and contain foreign exchange volatility. Recent state election wins for the incumbent government are also seen as a positive factor.