Rupee struggles near all-time low amid fragile risk tone, skewed flows

• The Indian rupee is set to dip and trade with a heavy tone due to weak risk appetite and skewed flows.
• The rupee hit a new all-time low of 90.55 per dollar on Friday, losing nearly 0.5% last week and 5.6% year-to-date.
• Its weakness is attributed to a lack of a U.S. trade deal, weak capital flows, a widening trade deficit, and increased importer hedging.
• The Reserve Bank of India's support has appeared less forceful since the currency weakened past the 88.80 level.
• Poor global risk sentiment and foreign investor selling of Indian shares and bonds are also impacting the rupee.

Why It Matters: The Rupee's all-time low signals economic instability and impacts daily life.