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USD/INR exchange rate & the rupee’s effective exchange rate (REER / NEER)

Q: What is the RBI reference rate for the US dollar?

The RBI reference rate is a benchmark USD/INR rate published by the Reserve Bank of India on each working day, computed from a volume-weighted average of market transactions in a short window around noon. It is widely used to value foreign-currency assets and liabilities. On 17 Jun 2026 the reference rate was about 94.38 rupees per US dollar.

Q: Why has the rupee weakened against the dollar?

A currency's level reflects trade and capital flows, interest-rate differentials, the dollar's global strength, oil prices and portfolio flows. Over the 12 months to mid-2026 the rupee depreciated roughly 8.96% against the US dollar, though it recovered about 2.75% in the most recent month. The RBI smooths excess volatility through dollar sales and purchases rather than targeting a fixed level.

Q: Does the RBI fix the rupee's exchange rate?

No. India runs a managed-float regime: the rupee's value is set by market demand and supply, while the RBI intervenes in the spot and forward markets only to curb disorderly movements and excessive volatility. It does not defend a particular USD/INR level.

Quick answerThe RBI reference rate for the US dollar was 94.38 INR/USD on 17 Jun 2026. The rupee strengthened about 2.75% over the prior month but is down about 8.96% over the prior 12 months. India runs a managed float — the RBI smooths volatility, it does not fix the level.

RBI reference rate

94.38

INR per USD · 17 Jun 2026

1-month change

▲ +2.75%

rupee vs US dollar

12-month change

▼ 8.96%

rupee vs US dollar

Recent USD/INR reference levels

Period	INR per USD	Note
Jun 2025	86.60	~12 months earlier (rupee ~9% stronger vs USD)
May 2026	97.00	~1 month earlier (rupee ~2.75% weaker vs now)
17 Jun 2026	94.38	RBI reference rate, latest verified print

The latest reference rate (17 Jun 2026) is the RBI’s published benchmark. The two earlier levels are indicative monthly reference points derived from the verified 1-month and 12-month percentage moves — for the exact daily reference-rate series and money-market data, see the RBI source linked below.

REER & NEER — the rupee’s real picture

The USD/INR rate is only one bilateral pair. To judge the rupee’s overall competitiveness the RBI publishes the NEER (trade-weighted average against a basket of currencies) and the REER (the NEER adjusted for inflation differentials). The RBI compiles 40-currency and 6-currency indices each month. Directionally, the rupee’s 40-currency REER slid from its late-2024 peak toward the ~100 region by early-to-mid 2026, signalling a real-terms depreciation even as inflation differentials cushioned part of the nominal fall. A REER above 100 (its base) suggests the rupee is relatively expensive in trade terms; below 100 suggests it is competitive for exporters.

What it means for bankers

The exchange rate sits at the heart of a bank’s treasury and trade-finance book. A weaker rupee raises the rupee value of external borrowings and import bills, can widen the current-account gap, and feeds imported inflation — which in turn shapes the repo-rate path. For forex desks, the RBI reference rate is the daily mark for revaluing open positions and FCNR/NRE balances; for trade-finance teams it drives LC and buyer’s-credit pricing. RBI intervention (visible in the forex reserves swing) is the clearest signal of how hard the central bank is leaning against a move.

Key terms in this dataPlain-English definitions of the terms behind this dashboard — see the full Indian banking glossary. REER · NEER · Forex reserves · LRS

Explore the rulesThe RBI rules behind cross-border flows, simplified for bankers: KYC / AML & FEMA reporting (LRS, remittances and reporting that govern forex transactions).

Master Direction familySee where these rules sit in the RBI rulebook — browse the relevant Master Direction crosswalk family: Foreign Exchange (FEMA).

More live dataExplore BankPulse’s other live RBI dashboards: Forex Reserves · Current Account · Trade Balance · External Debt · FDI & FPI.

USD/INR & effective exchange rate FAQ

What is the RBI reference rate for the US dollar?

The RBI reference rate is a benchmark USD/INR rate the Reserve Bank publishes each working day, computed from a volume-weighted average of market deals in a short window around noon. It is widely used to value foreign-currency assets and liabilities. On 17 Jun 2026 it was about 94.38 rupees per US dollar.

What is the difference between NEER and REER?

The Nominal Effective Exchange Rate (NEER) is the trade-weighted average value of the rupee against a basket of partner currencies. The Real Effective Exchange Rate (REER) adjusts the NEER for inflation differences between India and its trading partners. A rising index means the rupee has appreciated in effective terms; a falling index means depreciation. The RBI publishes 40-currency and 6-currency indices monthly.

Why has the rupee weakened against the dollar?

Exchange rates move with trade and capital flows, interest-rate differentials, the dollar's global strength, oil prices and portfolio flows. Over the 12 months to mid-2026 the rupee fell about 8.96% against the dollar, though it recovered roughly 2.75% in the latest month. The RBI smooths volatility rather than targeting a level.

Does the RBI fix the rupee's exchange rate?

No. India runs a managed float: the rupee's value is set by market demand and supply, and the RBI intervenes only to curb disorderly, excessive movements. It does not defend a particular USD/INR level.

Last reviewed 19 Jun 2026 by Vikram Jain

Source: RBI reference rate & Weekly Statistical Supplement, rbi.org.in; USD/INR levels and 1m/12m moves web-verified (public FX data, Jun 2026). REER/NEER described directionally; see RBI for the exact monthly indices. Reviewed by Vikram Jain. Last updated 19 Jun 2026, 10:36 IST.