India’s central bank will allow the rupee to weaken as the country’s external position comes under strain from slowing dollar inflows, widening trade pressures and heavy foreign selling in domestic markets, according to sources cited by news agency Reuters. The Reserve Bank of India (RBI), which had been actively supporting the currency until last month through sizeable dollar sales, has let the rupee depreciate 1.3% in the last seven trading sessions, taking it to a record Rs 90.42 per dollar. The rupee is now down 5.5% this year, making it Asia’s worst-performing currency. According to three people familiar with the RBI’s thinking, the central bank is no longer inclined to defend any specific exchange-rate level and will focus instead on preventing disorderly movements or specul

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