Finance
Potter HeadRupee's Magical Misadventure: 2026 Starts on a Low Spell
In the enchanted land of India, the rupee stumbles into 2026 like a clumsy house-elf, facing its steepest drop in three years! With a $22 billion balance of payments deficit and wizards pulling $18 billion from equities, the wise Sanjay Malhotra at the RBI is casting spells to manage volatility. Could a US trade deal be the magical charm to lift the rupee back on its feet?
few days ago | Reuters
Quick rundown
1.The Indian rupee faces its largest annual fall in three years.
2.Record equity outflows and lack of a US trade deal weigh on the rupee.
3.RBI's flexible approach allows the rupee to weaken amidst external strains.
4.Foreign investors withdrew a record $18 billion from Indian equities in 2025.
5.A trade deal with the US could offer temporary relief for the rupee.
