Indian rupee faces mounting pressure as it approaches 96 per dollar.

Indian rupee faces mounting pressure as it approaches 96 per dollar. The currency hit a record intraday low of 95.96 on Thursday before the central bank intervened to stabilize it. The rupee closed at 95.76, reflecting persistent headwinds from foreign fund outflows, oil-driven inflation concerns, and balance of payments challenges. Analysts expect further weakness ahead, with projections pointing toward 98 per dollar levels. The government is considering tax cuts for foreign portfolio investors on Indian bonds to attract capital inflows, though experts remain cautious about material impact. This marks another difficult chapter for the rupee, which has already weakened nearly three percent this fiscal year and remains among Asia's weakest performers against the US dollar.