Indian Rupee Falls to Near One-Month Low Amid Importer Dollar Demand and Foreign Outflows

The Indian rupee fell to a near one-month low, closing around 90.8 against the US dollar, marking its steepest single-day decline in nearly two months. This depreciation was driven by strong dollar demand from importers, maturing positions in the non-deliverable forwards market, persistent foreign capital outflows, and a firm US dollar amid resilient US economic data. The Reserve Bank of India intervened intermittently but allowed the rupee to weaken amid ongoing concerns over US-India trade negotiations, rising crude oil prices, and a widening trade deficit. Analysts expect continued pressure on the rupee in the near term.