👉 Current Situation
On January 13, 2025, the Indian rupee plummeted to a historic low of 86.31 against the US dollar, marking a significant decline for the second consecutive session. This drop was influenced by strong US economic indicators, particularly better-than-expected job growth, which bolstered the dollar's strength and raised expectations for slower Federal Reserve interest rate cuts.

👉 Key Factors Contributing to Decline
Rising Crude Oil Prices: Brent crude surged to $80.91 per barrel, increasing import costs and widening India's trade deficit.
Foreign Capital Outflows: Foreign institutional investors sold off ₹2,254.68 crore in equities, adding pressure on the rupee.
Weak Domestic Market Sentiment: The BSE Sensex fell by 550 points, reflecting negative trends in equity markets.

👉 Outlook and Implications
The rupee's performance is expected to remain volatile, influenced by global market trends and oil price fluctuations. With forex reserves declining to $634.585 billion, the Reserve Bank of India faces challenges in stabilizing the currency amidst these pressures.

What strategies should India adopt to stabilize the rupee in this turbulent economic climate? 

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