Rupee Dips Past 91 Amid FPI Outflows, Global Uncertainties & Trump's Tariff Threats

• The Indian rupee has fallen over 1% this month, testing the 91 level against the US dollar due to persistent FPI outflows and global uncertainties.
• Foreign Portfolio Investors (FPIs) have withdrawn over $3 billion from Indian equities in January, significantly impacting the rupee's stability.
• Delays in the US-India trade deal and fresh global triggers, such as US President Donald Trump's threat to impose tariffs on European economies over Greenland, are contributing to the pressure.
• Limited intervention by the Reserve Bank of India (RBI) is also cited as a factor adding to the rupee's depreciation.
• The global 'risk-off' sentiment, fueled by the Greenland issue, has led to increased demand for precious metals and strong offshore hedging in USDINR, pushing the rupee down.

Why It Matters: FPI outflows, trade deal delays, and global political tensions are collectively weakening the Indian rupee.