Goldman Sachs Group Inc. has suggested that the Indian rupee's recent decline may be approaching a bottom due to measures introduced by the Reserve Bank of India (RBI) aimed at increasing foreign capital inflows. These measures, which include tax exemptions for foreign investments in government securities and expanded access for foreign investors, could potentially attract up to $50 billion in inflows, thereby alleviating depreciation pressure on the rupee. Following a drop to a record low of 96.9650 per dollar, analysts had speculated that the currency might fall further to 100 per dollar. However, Goldman Sachs has revised its forecast, projecting the dollar/rupee rate at 96 in three months, up from a previous estimate of 97. Despite the recent volatility, Goldman analysts, including Kamakshya Trivedi, do not foresee significant appreciation of the rupee. They noted that the currency's depreciation aligns with trends seen in other regional currencies affected by rising energy costs. The RBI's actions are expected to help rebuild the reserve buffer and unwind short positions in the forward market, making the rupee a more attractive option for inclusion in diversified investment portfolios.