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.
The rupee has fallen from Rs 85 to Rs 90 per USD in under a year, far quicker than previous five-rupee intervals, which earlier took anywhere between 581 to 1,815 days. SBI in its report noted this as the second-quickest fall since the 2013 Taper Tantrum.
The Indian rupee plunged to an all-time low against the US dollar on Wednesday, crossing the psychologically significant 90 mark amid foreign fund outflows. The development came amid firm crude oil prices and perceived uncertainty around the India-US trade deal.
As the rupee weakens toward Rs 90 per dollar, Uday Kotak has urged Indian businesses to break out of their comfort zone, warning that foreign investors appear to be calling the shots in current market dynamics.