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Markets / The Economic Times

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Upasana Chachra highlights FII outflows, trade uncertainty behind rupee weakness

The Indian rupee is experiencing significant pressure and hitting record lows, primarily due to weak capital flows, including foreign portfolio outflows and muted foreign direct investment. While the current account deficit remains within comfort levels, trade negotiation uncertainties add to the strain. Despite mixed high-frequency indicators, the economy is showing signs of gradual recovery.

2 Dec 2025 2:28 pm