India’s currency slipped below the psychologically critical 90-per-dollar level on Wednesday , jolting the financial markets and amplifying concerns about the broader macroeconomic landscape. With the rupee losing over 5 per cent this calendar year, the breach of the 90-threshold on Tuesday sparked unease not because of one single shock, but on account of convergence of pressures that have steadily eroded sentiment.

On the surface, the macro backdrop appears supportive: crude oil prices have softened, offering relief on the import bill; inflation has cooled to below one per cent, easing household and corporate cost pressures; and GDP growth surprised on the upside with an impressive 8.2 per cent expansion in the September quarter. However, while these factors should ideally bolster a

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