Rupee Nears All-Time Low After RBI Rate Hike: Why Is The Indian Currency Under Pressure?

The Indian rupee has come under fresh pressure after the RBI raised interest rates, with the currency moving closer to its all-time low against the US dollar. Rising crude oil prices and relentless FII selling are increasing pressure on the rupee by widening India’s import bill and driving dollar demand. Nachiket Kelkar, Business Today, explains why the RBI’s rate hike has not provided the expected boost to the currency and how external factors are weighing on the rupee. The discussion also looks at FCNR deposit inflows, RBI forex reserves and the central bank’s ability to intervene to maintain stability in the currency market.