Why the rupee remains under pressure despite lower CAD?

What happened: The rupee has depreciated 5% this calendar year and further weakness is likely despite sustained RBI intervention, as external pressures remain beyond the central bank's control. Key numbers: Rupee down 5% this year. Indonesian rupiah fell 7.3%, the weakest in Asia. South Korean won gained 8.5%, the best performer. Chinese yuan gained 4.6%. Why it matters: DBS Bank's Radhika Rao sees limited room for sustained rupee appreciation on manufacturing and trade competitiveness grounds, with a challenging portfolio flows outlook leaving the door open to further gradual depreciation.

Rupee pressure persists despite lower current account deficit, highlighting underlying currency weakness.

Rupee pressure persists despite lower current account deficit, highlighting underlying currency weakness. — impact context not separately stored; see What changed.