Indian Rupee Falls 11.86% Against Pakistani Rupee to 2.9010 in 12 Months

4 articles · Updated · The Wire · May 19

2.9010 PKR per INR on May 18, 2026 marked an 11.86% drop from 3.2913 a year earlier, with the rupee down 6.8% in 2026 alone against Pakistan’s currency.
The report says that slide points to India-specific economic and policy weaknesses rather than only dollar strength or West Asia turmoil, because other regional currencies did not weaken against the Pakistani rupee in the same way.
1.28 Bangladesh taka per rupee, down from 1.42 over the same period, adds to the picture of broader rupee weakness beyond a single bilateral exchange rate.
The rupee’s decline began around the May 2025 India-Pakistan conflict and ceasefire, but its persistence for a full year has reinforced concerns about structural strains in India’s economy.
MUFG said in March the rupee was likely to keep falling through 2026 regardless of the West Asia crisis, while the currency’s weakness has also fed domestic political pressure over rising overseas costs.

As neighboring economies recover, what deep-seated issues are causing India's rupee to collapse?

With the rupee at a record low, are India's economic fundamentals truly as strong as claimed?