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Rupees slide raises inflation risk, clouds rate cut hopes. Whats next for rate-sensitive sectors?

The rupees drop past 90 per dollar has shaken markets and dragged equities lower, with rate-sensitive sectors hit hardest. Despite strong GDP growth, the currencys near 5% depreciation this year makes it the worst performer among major EM peers and has revived inflation concerns. Analysts warn that continued weakness could limit the RBIs scope for further rate cuts.