The Indian rupee fell to around 91.7 per dollar, marking its weakest level on record, pressured by persistent capital outflows. Foreign investors are repatriating funds following a sharp stock market sell-off that has erased $360 billion so far this year, driving significant USD demand and leaving the rupee vulnerable. Market attention is also focused on India’s recent “mother of all deals” free trade agreement with the European Union, which is widely seen as a strategic hedge against volatile US trade policies. The uncertainty over how the US administration might react to the deal is reinforcing risk aversion, prompting investors to favor dollar-denominated assets. Despite robust domestic growth signals, including January’s strong manufacturing and services PMIs, investors remain cautious on India’s exposure to US tariffs on goods and oil imports and upcoming key fiscal announcements, curbing any relief from a softer dollar.