The Indian rupee fell to around 90.8 per dollar, approaching its weakest level on record amid sustained foreign portfolio outflows. January outflows from local equities have already reached $2 billion, with investors selling $390 million in shares and $91 million in bonds on January 15. Additionally, domestic imbalances, including a widening merchandise trade deficit and manageable but persistent current account gaps, continue to weigh on the currency. Elevated US Treasury yields and a firm dollar, combined with policy uncertainty linked to President Trump’s Greenland tariff threats, have further reinforced the rupee’s vulnerability. At the same time, the Reserve Bank of India (RBI) maintains a market-driven approach, stepping in only to prevent disorderly swings rather than defending any specific level. Governor Sanjay Malhotra emphasized that this policy framework is aimed at orderly currency movement and financial stability, tolerating gradual depreciation.