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India's economy remains the fastest-growing major economy globally, yet the Indian Rupee (INR) continues to underperform against major currencies like the US Dollar. Persistent current account deficits, high inflation, and capital outflows are key factors weighing on the rupee despite strong economic growth. The Reserve Bank of India's monetary policy and global risk-on/risk-off sentiment will play critical roles in shaping the currency's trajectory. Weakness in the rupee could impact global investors, particularly in emerging markets, and affect trade dynamics between India and major trading partners.
