The Rupee has breached the 90-per-dollar mark for the first time, slipping more than 5 per cent since January and rattling financial markets. The fall contrasts sharply with India’s strong domestic fundamentals—8.2 per cent GDP growth and inflation below one per cent—but reflects sustained capital outflows, record imports, and what traders describe as a restrained approach by the Reserve Bank of India (RBI) in managing currency volatility. With the rupee now deeply oversold, all eyes are on the RBI’s upcoming policy statement for cues on its intervention strategy. Advertisement

FPI withdrawal and falling reserves

The currency’s slide has been aggravated by heavy foreign portfolio investor (FPI) selling. FPIs have withdrawn ₹1.48 lakh crore from Indian equities since January 2025, accord

See Full Page