Rupee’s slide raises inflation risk, clouds rate cut hopes. What’s next for rate

The rupee’s drop past 90 per dollar has shaken markets and dragged equities lower, with rate-sensitive sectors hit hardest. Despite strong GDP growth, the currency’s near 5% depreciation this year makes it the worst performer among major EM peers and has revived inflation concerns. Analysts warn that continued weakness could limit the RBI’s scope for further rate cuts.