India’s currency is sliding just as its trade outlook worsens. Far from signalling fragility, that drop may prove a timely shock absorber.The rupee has fallen 2.3% against the dollar since early June, resuming a broader decline that began late last year. A brief rebound in March and April, helped by a softer dollar and resilient domestic growth, has faded as headwinds return: tight US monetary policy, firm crude prices, and geopolitical risks including secondary sanctions due to Russia trade links. The currency now trades near its long-term average annual depreciation of 3.2%.
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