NEW DELHI: The Indian rupee has continued to display pronounced weakness this financial year, slipping nearly 5 per cent against the US dollar and consistently trading above the 90-per-dollar mark in recent days.

HDFC Tru primer on recent currency movements attributes the depreciation to a confluence of external and domestic pressures, including higher trade tariffs imposed by the US on India, a widening current account deficit, elevated overseas interest rates drawing capital outflows, India’s heavy import dependency, particularly for oil and electronics, and persistent foreign investor selling.

The report highlights that while the rupee’s long-term trajectory has been one of structural depreciation, averaging 4-5 per cent per year over the past five decades, the recent bout of weakness

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