Rupee Breaches 91 Against Dollar: Is This India's New Normal?

• Indian Rupee hits a new all-time low of 91.08 against the US dollar, signaling a significant shift in currency dynamics.
• Weakness is driven by foreign portfolio investor outflows, tighter global financial conditions, and uncertainty in India-US trade.
• Despite the falling rupee, India's economy shows strong growth, controlled inflation, and a healthy banking system.
• RBI is focused on smoothing volatility and preventing disorderly moves, accepting depreciation as a price of stability.
• A weaker rupee makes imports costlier, impacts inflation, and pressures corporates, though exporters see a temporary boost.

Why It Matters: Rupee's fall past 91 signals a new normal of currency volatility driven by global capital dynamics.