Rupee Plunges: Why India's Currency is Asia's Worst Performer Amid US Tariffs & Slow FPI

• The Indian Rupee has become Asia's worst-performing currency, falling 3.35% this year, despite America's tariff hikes impacting several Asian economies.
• While US tariffs affected both India and China, China's Yuan remained stable due to intervention by the People's Bank of China, unlike the Rupee.
• Domestic factors like weak capital inflow and a significant drop in Foreign Portfolio Investment (FPI) to $0.4 billion (from $7.7 billion last year) are major reasons for the Rupee's pressure.
• RBI intervened when the Rupee crossed 91, but global challenges and domestic imbalances persist, exacerbated by declining returns on investment and slower nominal GDP growth.
• Delay in a trade deal with America, a key export market (20% of India's exports), is also impacting investor sentiment, unlike Indonesia which secured a deal.

Why It Matters: US tariffs, weak FPI, and delayed trade deals are driving the Rupee's decline as Asia's worst performer.