Part 2/8:
The ongoing depreciation of the Indian rupee can be attributed to multiple factors, including a disastrous trade deficit. As reported, the government intends to revise its import numbers significantly, revealing a critical discrepancy regarding gold imports. This trade deficit exacerbates investor fears and adds pressure to the already beleaguered currency.
The rupee's plight isn’t merely a local phenomenon; it reflects broader global uncertainties. Economies everywhere are adjusting to a reality shaped by trade wars, inflation, and fluctuating interest rates driven by global central banks—especially the Federal Reserve. The perception of weakness in the rupee reflects deeper systemic issues rather than mere speculation or psychological phenomena.