New Delhi, Dec. 27 -- The Indian rupee is expected to show more weakness going ahead into 2026, according to a report by MUFG, a global financial group.

In a report earlier this month, it forecast more weakness for the Indian rupee. It expects the Indian rupee to appreciate modestly above the 90 level in 2026, targeting 90.80 by the September 2026 quarter.

"We have already been expecting INR to weaken and underperform, although we note FX outflow pressures have been more acute than we have anticipated thus far. Our forecasts also imply continued INR weakness against key FX crosses such as EUR (Euro), JPY (Japanese yen) and CNY (Chinese Yuan)," the report read.

It has also been asserted that higher import needs and soft net FDI may weig...