Over the past month, the Indian rupee has almost declined. Regardless of the overall trend in the Asian market, the currency has hit record lows several times, which has sparked discussions among bankers about the possibility that the Bank of India may step up its intervention. Affected by the continued imbalance in the liquidity of the US dollar, the rupee has accumulated a cumulative decline of about 2.5% over the past month. The delay in reaching a trade agreement between the US and India has also dampened market sentiment. Importers' hedging activity intensified and foreign investors remained cautious about Indian stocks, factors that continued to put pressure on the rupee. The dominance of capital flows has weakened the rupee's sensitivity to daily fluctuations in similar Asian currencies, causing downward momentum to continue to accumulate, and boosting market expectations for further depreciation of the rupee and increased speculative activity.

Over the past month, the Indian rupee has almost declined. Regardless of the overall trend in the Asian market, the currency has hit record lows several times, which has sparked discussions among bankers about the possibility that the Bank of India may step up its intervention. Affected by the continued imbalance in the liquidity of the US dollar, the rupee has accumulated a cumulative decline of about 2.5% over the past month. The delay in reaching a trade agreement between the US and India has also dampened market sentiment. Importers' hedging activity intensified and foreign investors remained cautious about Indian stocks, factors that continued to put pressure on the rupee. The dominance of capital flows has weakened the rupee's sensitivity to daily fluctuations in similar Asian currencies, causing downward momentum to continue to accumulate, and boosting market expectations for further depreciation of the rupee and increased speculative activity.