Rupee Struggles Amid Global Pressures, Geopolitical Tensions

The rupee faced selling pressure and risk-off sentiment in global markets, settling near its record low amid foreign outflows and geopolitical tensions. Despite a resilient medium-term economic outlook, near-term currency direction is impacted by global financial trends, causing concerns for investors.

The rupee has settled near its record lows, reaching 91.96 against the US dollar. The currency's weakness is attributed to foreign fund selling pressures and geopolitical uncertainty affecting global markets. These factors have resulted in an intra-day low of 92, putting the rupee in a tough position.

Forex traders observed that the rupee's plunge is further exacerbated by rising crude oil prices and the pressure from foreign outflows. Amid the domestic market, Sensex and Nifty closed positively, but concerns over the rupee's value linger, especially in light of India's strong economic fundamentals.

Experts like Akshat Garg suggest that while India's economic health appears stable, immediate currency challenges remain influenced by external factors, such as US monetary policies and global developments. The Economic Survey underscores that India's economic prowess is not accurately represented by the rupee's current value.

(With inputs from agencies.)