USD INR ₹ 83.95
GBP INR ₹ 108.10
CAD INR ₹ 60.61

USD to INR Forecast 2023

Updated on February 09, 2023 05:24 pm
usd to inr forecast 2023

The Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, weighed down mainly by the worries over the nation’s wide current account deficit due to the increase in oil prices sparked by the Russia-Ukraine conflict.

However, heading into 2023, market analysts predict that the Indian rupee will trade with an appreciation bias. Despite the likelihood of a difficult first half of the year, recovery prospects for the second half of the year seem to be more promising.

In this blog, we covered the performance of the US dollar-Indian Rupee in 2022, the Indian rupee's current outlook, what's driving the value of USD, the USD to INR forecast, and much more.

The US Dollar-Indian Rupee Performance in 2022

The Indian rupee finished the year at 82.72 to the US dollar, down from 74.33 at the end of 2021 while the dollar index had its biggest yearly gain since 2015.

The index-an effective dollar performance measure- shows its relative strength or weakness compared to a handful of competing currencies such as the British pound (GBP), Canadian Dollar (CAD), Japanese yen (JPY), Swedish krona (SEK), and Swiss franc (CHF).

The continued rupee dollar weakness since January 2022 has been consistent with the depreciation experienced by most dollar-paired currencies.

The surging dollar was a result of the tough monetary policy stance taken by the US Federal Reserve to combat inflation.

Despite the decrease in crude oil prices in the later part of the year, the rupee lagged behind its Asian counterparts as the country's central bank, RBI, mopped up dollars to increase its currency reserves.

What Has Contributed to USD Strength?

The dollar relative to its rival currency gained ground due to hawkish Federal Reserve (Fed) policy and global inflationary pressures.

Although recession worries have lowered the dollar's 2022 high to 11.87%, its overall strength still signals a more positive relative outlook for confidence in the U.S. economy.

The key driver behind the dollar's strength has been the skyrocketing inflation, which prompted the Federal Reserve to raise interest rates six times in 2022. Such monetary policy aims to curb inflationary pressure by increasing the cost of borrowing and spending.

However, rising interest rates also make the dollar more alluring to investors while compelling people to save money.

While current inflationary pressures in the US have reached their highest level of inflation in 40 years, other factors have also strengthened the dollar.

The geopolitical uncertainty brought on by the Ukraine conflict, dramatically increasing energy costs, and labor shortages sparked by the "great resignation," have overall contributed to soaring prices, prompting a forecast of 8% for the U.S. Consumer Price Index (CPI) for the year. This further demonstrates the dollar's counter-cyclical nature and its safe haven status for capital inflows.

Will the Dollar Strengthen Against the Rupee in 2023?

The USD to INR exchange rate has been in a bearish outlook in 2023 for several reasons.

The rupee's value against the dollar has received a temporary reprieve thanks to the better-than-expected CPI figures released for October. Inflation dropped from 8.2% in September to 7.7% in October, which was lower than anticipated.

Investors were motivated to swap dollar safety for riskier asset classes amid the reduced likelihood of further Federal Reserve interest rate hikes.

The USD/INR plunged as the US dollar index crashed to the lowest level in 7 months. Inflation plummeted for six straight months while retail sales dropped. A mild recession may be on the horizon as companies like Microsoft, Google, Salesforce are laying off thousands of employees.

As a result, the rupee gained dramatically in strength against the dollar, generating a positive INR to USD forecast.

Second, the recovery of currencies from emerging markets has caused a decline in the USD/INR rate. Some emerging market currencies, such as the South African rand, have recently recovered as investors have adopted a risk-on attitude.

Additionally, it is anticipated that the Indian economy will lead the economic recovery in the coming few months. The continuous outflows from China are a key driver for the Indian economy. As tensions with western nations rise, businesses like Apple have begun moving their operations from China to India.

This rupee gain might only be fleeting, though. Some longer-term predictions see it as a correction in the dollar's long-term strength versus the rupee. The rupee is therefore anticipated to continue to decline over the following months, gradually giving up its gains versus the dollar. 

2023 USD to INR Forecast

A large wide current account deficit this fiscal year will likely keep the Indian rupee under pressure.

RBI has used up a large number of reserves in 2022 to manage the Indian rupee dropping. If there is an inflow of liquidity back into domestic markets, that will help build back the reserves.

However, the rupee weakness won't lead to runaway depreciation, but a milder 2-3% drop in this fiscal year starting April 1.

The rupee is anticipated to weaken against the US dollar in the first half of 2023 as ongoing concerns about global inflation and the economy continue to dampen risk appetite.

However, the recovery prospects appear brighter in the second half due to the easing of the crude oil and other commodity prices and the expectation that foreign investors will keep buying Indian equities.

Equity inflows, according to analysts, would be a crucial indicator to watch for the rupee for foreign investors.

Two major concerns for the rupee are that the Fed may keep rates higher than expected and India's exports may suffer if the slowdown in developed nations deepens into a sustained recession.

However, experts warned that predicting the direction of the stock market has grown challenging in light of numerous uncertainties going into 2023, such as restrictive monetary policy conditions, a possible recession in some economies, and a prolonged geopolitical conflict.

The critical question is whether weak growth or prolonged inflation would be the main issue in 2023. The U.S. dollar will decline if there is weak growth. If inflation remains high, the dollar will appreciate.

If commodity prices continue to be kept in check, there could be some decrease in the growing twin deficits namely the current account deficit and trade deficit.

In the later part of 2023, the US Federal Reserve may decide to stop raising interest rates since there may be clear signs that inflation is moving in the direction of their target of 2%.

Experts expect the rupee to trade in the range of 80-89 per dollar. The current USD/INR exchange rate is 81.52.

2023 Monthly USD/INR Forecast

The following INR USD forecasts are based on information that is currently available.  Depending on the extent to which key factors, such as interest rates and central bank policy match market expectations, the forecasts could be changed and turn out to be false. 

Always conduct your research and remember that future results don't depend on past performance.

Monthly USD/INR Forecast 2023

January 2023: At the beginning at 82.70 Rupees. At the end of the month 81.32. Maximum 82.92, Minimum 80.10. The average exchange rate is 81.76. 

February 2023: At the beginning at 81.32 Rupees. At the end of the month 81.18. Maximum 82.40, Minimum 79.96. The average exchange rate is 81.22. 

March 2023: At the beginning at 81.18 Rupees. At the end of the month 82.52. Maximum 83.76, Minimum 83.76. The average exchange rate is 82.16.

April 2023: At the beginning at 82.52 Rupees. At the end of the month 81.13. Maximum 82.52, Minimum 79.91. The average exchange rate is 81.52.

May 2023: At the beginning at 81.13 Rupees. At the end of the month 82.37. Maximum 83.61, minimum 81.13. The average exchange rate is 82.06.

June 2023: At the beginning at 82.37 Rupees. At the end of the month 84.42. Maximum 85.69, minimum 82.37. The average exchange rate is 83.71.

July 2023: At the beginning at 84.42 Rupees. At the end of the month 84.62. Maximum 85.89, Minimum 83.35. The average exchange rate is 84.57. 

August 2023: At the beginning at 84.62 Rupees. At the end of the month 85.03. Maximum 86.31, Minimum 83.75. The average exchange rate is 84.93. 

September 2023: At the beginning at 85.03 Rupees. At the end of the month 86.54. Maximum 87.84, Minimum 85.03. The average exchange rate is 86.11.

October 2023: At the beginning at 86.54 Rupees. At the end of the month 87.77. Maximum 89.09, Minimum 86.45. The average exchange rate is 87.46.

November 2023: At the beginning at 87.77 Rupees. At the end of the month 88.41. Maximum 89.74, minimum 87.08. The average exchange rate is 88.25

December 2023: At the beginning at 88.41 Rupees. At the end of the month 88.92. Maximum 90.25, minimum 87.59. The average exchange rate is 88.79.

Send Money from US to India

If you wish to send money to India, the higher USD/INR exchange rates are in your favor because you can get more rupees for your dollars. To send money to India, there are many options available. 

The best way to send money to India from the US is online. Compare the top money transfer companies here to find the best exchange rate. 

How to Get the Best USD to INR Rate

Compare your options and shop around to find the best USD to INR exchange rate using our comparison tool

#protip Use online money transfer services, which have some of the lowest prices when compared to conventional brick-and-mortar banks, to avoid paying exorbitant fees.


Given the strength of the dollar in 2022 and the bearish forecast for the rupee, the rupee's weakness is likely to continue in the long term.

However, do keep in mind that the forecasts are often inaccurate and subject to correction. The USD to INR forecasts are based on the rate of inflation, central bank policies, and the health of the US and Indian economies.

Send money home to India today while the USD to INR exchange rate is in your favor! Compare rates and providers by using our online comparison tool.

Rate article:
Money Transfer FAQ's
Related Articles
UK to Philippines
How to Send Money from the UK to Philippines

Sending money from the UK to the Philippines is a significant financial transaction that requires careful consideration to ensure efficiency, cost-effectiveness, and security. As an immigrant or someone supporting family and loved ones back home, understanding the process and selecting the right remittance service is crucial. Do not worry. CompareRemit is here to guide you through all of your remittance needs. In this guide, we'll walk you through the essential steps, considerations, and top remittance providers to help you make informed decisions and maximize the value of your money transfers.Things to Consider Before Transferring Money from UK to PhilippinesBefore initiating a money transfer, it's crucial to grasp two essential factors: exchange rates and transfer fees. The exchange rate refers to the value of one currency relative to another. For example, if the GBP to PHP exchange rate is 1 GBP to 71.81 PHP, it means one British pound is equivalent to 71.81 Philippine pesos. Transfer fees, on the other hand, are charges imposed by remittance companies for their services.It's worth noting that exchange rates and transfer fees can vary significantly across different companies. While some providers may offer competitive exchange rates, they might compensate by charging higher transfer fees. Conversely, others may provide lower transfer fees but offer less favorable exchange rates.It's essential to find a balance between favorable exchange rates and reasonable transfer fees to maximize the value of your remittance. Some companies may offer promotional rates or discounts for first-time users, while others may have ongoing promotions or loyalty programs. Comparing different remittance providers using platforms like CompareRemit can help you find the best combination of rates and fees for your transfer.Will GBP to PHP Increase or Decrease?As of the latest data, the GBP to PHP exchange rate stands at 1 GBP to 71.81 PHP. CoinCodex forecasts a potential 9.43% rise in the GBP to PHP exchange rate over the next year, reaching approximately ₱ 78.22 at some point during the year. While exchange rate predictions provide valuable insights, they are subject to change based on various economic and geopolitical factors. Monitoring exchange rate trends regularly can help you identify favorable opportunities for sending money to the Philippines.When is the Best Time to Send Money from the UK to Philippines?Determining the best time to send money involves strategic planning and analysis of exchange rate fluctuations. Referencing forecast predictions and using comparison sites like CompareRemit can help you track the best exchange rates and promotional offers from top remittance companies. By timing your transfers during periods of favorable rates or promotions, you can optimize the value of your remittance and save on transfer costs.How to Transfer Money from the UK to PhilippinesOnce you've finished comparing and contrasting the top providers and selected the best remittance provider through CompareRemit’s Compare Tool, the next step is to initiate the money transfer. Remittance services typically offer various transfer methods, including online transfers, bank deposits, and cash pickups.Sign up: Create an account with your chosen remittance provider and complete any required verification steps.Enter recipient details: Provide the recipient's information, including their name, address, and contact details.Select transfer amount: Enter the amount you wish to send, ensuring it meets any minimum or maximum transfer limits.Choose delivery method: Select the preferred delivery method for the recipient, such as bank deposit or cash pickup.Review and confirm: Double-check the transaction details, including exchange rate and fees, before confirming the transfer.Complete the transfer: Submit your payment and wait for confirmation of the successful transfer.Top Remittance Providers for Transferring Money from the UK to the PhilippinesXe Money TransferXe offers competitive exchange rates, low fees, and fast transfers, making it an excellent choice for sending money from the UK to the Philippines. Their user-friendly platform ensures a seamless remittance experience for users.Wise Money Transfer Formerly known as TransferWise, Wise provides transparent exchange rates and minimal fees, allowing users to send money with confidence. With millions of satisfied customers worldwide, Wise offers a reliable and cost-effective solution for international transfers. Instarem Money TransferInstarem offers competitive rates, no hidden fees, and real-time tracking, ensuring transparency and security throughout the transfer process. With Instarem, users can send money to the Philippines quickly and conveniently.PassToPassTo specializes in tailored remittance solutions for migrants, offering flexibility, convenience, and personalized service. With a focus on customer satisfaction and reliability, PassTo is an excellent choice for sending money to the Philippines and beyond.Frequently Asked QuestionsQ: What are the best rates from GBP to PHP?A: As exchange rates fluctuate, it's advisable to monitor platforms like CompareRemit to find the best rates from GBP to PHP offered by various remittance providers.Q: When is the best time to transfer money from the UK to Philippines?A: Monitor exchange rate trends and utilize comparison tools to identify favorable transfer windows.Q: How can I compare money transfer services from the UK to Philippines?A: Utilize comparison sites like CompareRemit to compare money transfer services based on exchange rates, fees, transfer speed, and customer reviews.Q: What is the best way to transfer money to the Philippines online?A: The best way to transfer money to the Philippines online is to use a reputable remittance provider, ensuring competitive rates and secure transactions.Q: How can I ensure the safety and security of my money transfers?A: Choose reputable remittance providers with robust security measures in place to safeguard your transactions.

Understanding USD to PHP
Understanding USD to PHP Exchange Rates in 2024

For many immigrants or individuals supporting their families in the Philippines, understanding the fluctuations in USD to PHP exchange rates is very tricky. Navigating the intricacies of these rates involves examining a spectrum of economic, political, and social factors.CompareRemit is here to make life easier for you, so you can make the best decision with little to no hassle on your part. In this guide, we'll unravel the complexities surrounding USD to PHP exchange rates, providing valuable insights to empower you in making informed decisions for your money transfers.​​Interest Rates: The Currency Tug-of-WarOne of the primary factors that influence exchange rates is  interest rates. When the U.S. Federal Reserve adjusts interest rates, it sends ripples through the currency market. Generally, higher interest rates attract foreign investment, strengthening the USD against the PHP. For individuals, keeping an eye on interest rate differentials between the U.S. and the Philippines can offer insights into potential shifts in exchange rates.Inflation: The Balancing ActInflation, the rise in the price of goods and services, plays a pivotal role in currency valuation. Countries experiencing lower inflation rates often witness an appreciation in their currency. Comparing inflation rates between the U.S. and the Philippines allows you to gauge the potential strength of the USD. A lower inflation rate in the U.S. compared to the Philippines may contribute to a stronger USD.Government Policies: Shaping Economic StabilityGovernment decisions and economic policies, both domestic and international, have large impacts on exchange rates. Policies promoting economic stability, prudent fiscal management, and sound monetary measures contribute to a stronger currency. Staying informed about the policies of both the U.S. and the Philippines will allow you to gain an understanding of the economic health and help predict dips and rises in exchange rates. Trade Balances: A Global PerspectiveThe dynamics of global trade, including exports and imports, definitely impact currency values. A country with a trade surplus, exporting more than it imports, may see a stronger currency. It might be very tedious to stay up to date with trade imbalances between the U.S. and the Philippines, but doing so can serve as an indicator of potential exchange rate movements.Historical Data: Patterns and PredictionsAnalyzing historical USD to PHP exchange rate trends can reveal patterns and provide insights. While past performance doesn't guarantee future results, understanding how rates responded to similar economic, political, or social events can guide your decisions. Historical data offers a valuable tool for predicting potential movements in exchange rates.Practical Tips for Informed Money TransfersStay Informed: Regularly follow financial news and updates from both the U.S. and the Philippines to understand the broader economic context. Regularly read our blogs to stay up to date with all the major money transfer news. Utilize Reliable Tools: Use CompareRemit’s online comparison tool and email alerts to track real-time exchange rates, ensuring you get the best value for your money transfers.Seek Professional Advice: Consulting financial experts or using professional services can provide personalized insights tailored to your specific situation, enhancing your decision-making process.In conclusion, comprehending the factors influencing USD to PHP exchange rates empowers you to make informed decisions when sending money to the Philippines. By staying attuned to economic indicators, leveraging historical data, and adopting a proactive approach, you optimize your money transfers, securing a more stable financial future for your loved ones.

Money from India to UK
Best Way For An NRI to Repatriate Money From India to UK

 When it comes to repatriating large sums of money from India, it puts every NRI in a situation where he has to consider different obligations regarding monetary cross-transfer. Taxation, reliability and transfer timelines are a few things that influence these decisions.Personal finances have to be dealt with delicately and ensured that there is no loss during the due process of remittances. There are various options available in the marketplace today, be it via traditional banking or the modern ways of online transfers.CompareRemit offers a platform that allows you to compare different players in the market and pick the best rates that suit your needs.Repatriation from an NRE AccountAs a component of the liberalization scheme of the Reserve Bank of India, remitting funds from India has become relatively easier. Balances in NRE (Non-Resident External) accounts are freely repatriable. No formalities or requisite permissions are required for remittances abroad be it any amount. Funds in accounts are usually funds deposited from abroad or current income like interest or dividends on investments made through foreign funds.Repatriation from an NRO accountBalances in NRO (Non-Resident Ordinary) accounts are subject to certain conditions. The remittance of USD 1 million per financial year from NRO accounts is allowed subject to certain procedural formalities. NRO account balances include income earned locally or certain capital account transactions. Form 15-CA and 15-CB need to be submitted before a remittance can go through.Read more on difference between NRE and NRO account on CompareRemit.The Traditional Option - BanksThe most sought after choice for remittances to the UK are banks. Banks are the most popular means of transferring money to the UK because:There is a high level of trust owing to the various government regulations.Familiarity and the comfort of knowing the neighborhood-friendly banker.There are two ways one could remit funds using banking services:Online - If your bank has given you access to internet banking and allows repatriation through online instructions.In-Person - One could walk into the bank yourself and have the formalities completed there and then and have the satisfaction of seeing it to its destination with a receipt in your hand.However, it is important to note that INR to GBP/GBP to INR exchange rates may not always be competitive. The transfer fees can be high and the charges, not always transparent.Selection of Remittance Service ProviderShould you want to avoid remitting through banks, approaching a marketplace of money changers would be the next best option. A selection of remittance service providers should be made based on the following:- Transfer chargesSpeed of transferExchange ratesCharges on the conversion of currency (INR to GBP)Freeze option on exchange rate while process requirements are completedFlexibility of payment optionsAlternative Options for Remittance from India to UKWise - UK based transfer service supporters - Wise incorporates credit cards/debit cards, SWIFT, international transfers to bank accounts, domestic wire transfers and more. Wise offers competitive exchange rates for pound to rupee or rupee to pound conversions. It assures fast and low-cost online money transfers from India to the UK.ExTravelMoney - One of the easiest services for transferring funds from India to the UK, they also offer the facility of booking orders online.Western Union - In four easy steps available online and your money is sent from India to the UK. They offer competitive rates and faster transfers as well.Thomas Cook - Provides the best foreign exchange rates besides giving the assurance of secure and timely remittances for specific purposes.BookMyForex - With zero commission and zero charges, they claim to send money from India to the UK at guaranteed lowest exchange rates. The time span for the transfers to be effective is 12 to 48 hours.To select the right money transfer service one should keep the cost and time factors in mind. Convenience at a reasonable cost should be the mantra for selecting a suitable remittance service provider.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App