Rupee Under Pressure: Why Crude, FII Outflows & Global Yields Are Raising Concerns

The Indian rupee remains under pressure as surging crude oil prices, heavy foreign fund outflows and rising global bond yields weigh on the currency. Despite RBI intervention and a decline in foreign exchange reserves, the rupee is nearing its all-time low levels. Business Today’s Nachiket Kelkar explains the key factors driving the currency slide and why the pressure may persist. The discussion also looks at the impact of higher US Treasury yields, continued FII selling, the FCNR(B) deposit inflows and the RBI’s recent 25 basis points rate hike, along with the outlook for the rupee in the coming months.