New Delhi, Oct. 1 -- The medium-term outlook for the Indian rupee remains tilted to the downside unless there is relief from the persistent twin deficit, current account and fiscal deficit, according to a report released by Union Bank of India.

The report noted that while reversal in flows may temporarily hide the fair value of the rupee, structurally the bias continues to be for gradual depreciation.

It stated, "Near-term price action may be choppy, but the medium-term slope for INR remains lower unless there is relief from persistent twin deficit"

According to the report, over a three-year window, the rupee tends to adjust by approximately 3-4 per cent annual average depreciation. This is in line with the India-US inflation and inter...