Rupee Plunges to New Lows: Fastest 30-Point Drop in 12 Years Amid Outflows

• The Indian Rupee surpassed 91 per US dollar for the first time, depreciating 3.5% in just two months.
• The latest 30-point fall in the rupee occurred in 12 years, significantly faster than the 20 years it took for a similar drop previously.
• Prolonged foreign outflows, delays in a US trade deal, and increased dollar buying by unhedged importers are key factors.
• The Reserve Bank of India (RBI) appears to be intervening less; FPIs have sold $18 billion in Indian shares year-to-date.
• The Indian Rupee is the worst-performing Asian currency this year, having dropped 6% against the US dollar.

Why It Matters: Indian Rupee faces rapid depreciation, hitting new lows due to outflows and reduced RBI intervention.