Despite recent macroeconomic strength, including robust export growth, the Indian rupee’s decline reflects a broader structural weakness that goes beyond its performance against the US dollar. Experts highlight that the currency has lost value against multiple global peers, with narrowing interest rate differentials and cautious foreign investor flows adding to pressure. While domestic fundamentals remain healthy, the interplay of global uncertainty and subdued equity inflows suggests the rupee’s challenges may persist, potentially prompting RBI intervention if the slide deepens.
