Rupee faces pressure from softer economic, corporate growth

Experts attribute this negative correlation to the spread impact on capital inflows.

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"A lower yield spread between the India and US bonds makes the Indian market less attractive to foreign portfolio investors, leading to lower FPI in our bond market and vice versa. Lower capital inflows in turn put pressure on the rupee, given that we consistently run a current-account deficit," said Madan Sabnavis, chief economist, Bank of Baroda.