Indian Rupee Slips to New Record Low: Here's Why It Could Fall Further

Abhishek Datta breaks down why the rupee's depreciation is structural, not just cyclical | Khaleej Times

As the Indian rupee reached a new record low against the US dollar, financial experts are examining the structural factors influencing the currency's performance. In a feature by Khaleej Times, Abhishek Datta, Vice President at The Continental Group, explains that the rupee's depreciation is largely driven by long-term economic fundamentals, including the inflation differential between India and the United States, rather than short-term market fluctuations. While geopolitical tensions and higher oil prices continue to create near-term pressure, he notes that the rupee is currently undervalued against many of its trading partners and could recover if market conditions stabilise. The article also highlights how the weaker rupee has benefited UAE-based Indian expatriates by increasing the value of remittances sent home, while supporting India's export competitiveness.