A concerning decline

The recent drop appears to be part of a broader trend that is influenced by global and domestic factors alike.

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It must be noted here that the macroeconomic credentials of the US economy are going through a sharp rise and global crude oil prices are increasing. Against this backdrop, the withdrawal of foreign investments from Indian markets has further compounded the problem. The US dollar has come back on a strong footing. Moreover, the headline Non-farm Payroll (NFP) print of 2,56,000 has far exceeded the expectations. At the same time, the US unemployment rate dropped marginally from 4.2 per cent. This has led to speculation that the Federal Reserve will reduce interest rates more cautiously, making US assets more attractive to investors. As a result, there has been a significant outflow of funds from emerging markets like India. Further adding to the rupee's troubles is the sharp increase in crude oil prices. Since India imports most of its oil, higher prices increase the country's import bill and put pressure on the rupee. Foreign investors have also been