The Saudi Arabian Riyal (SAR) to Indian Rupee (INR) exchange rate has shown stability recently, currently trading at approximately 23.53 INR, representing a 1.6% increase from its three-month average of 23.17 INR. Analysts have observed this figure as part of a broader stable range between 22.77 and 23.62 INR over the past few months. The official peg of the riyal to the U.S. dollar at 3.75 riyals per dollar continues to provide a foundation for this stability.
In contrast, the INR has faced significant pressure, recently hitting a record low against the U.S. dollar at 88.36. This devaluation has been fueled by concerns regarding new U.S. tariffs imposed on Indian goods, directly impacting the rupee's performance. The Reserve Bank of India (RBI) has intervened to stabilize the currency by selling dollars, aiming to manage further depreciation amid extensive foreign portfolio outflows totaling over $16 billion this year.
Despite these challenges, recent forecasts suggest that the INR may not decline further in the short term. A Reuters poll indicates expectations for the rupee to stabilize around 88.04 by the end of September and possibly around 88.00 over the next year. This outlook is supported by the RBI's interventions which are designed to cushion the rupee from the recent tariff-related pressures and portfolio outflows.
For transactions involving SAR and INR, businesses and individuals should consider the current rates and may benefit from the relative stability observed in the SAR. However, they should remain cautious of the potential volatility stemming from ongoing trade tensions and their impact on the INR.
