The Indian rupee witnessed a slight depreciation against the US dollar as global uncertainty led to cautious investor behavior. Currency markets are reacting to fluctuating oil prices and geopolitical risks.
A weaker rupee can increase import costs, especially for crude oil, which may impact inflation in the coming months. However, strong forex reserves are helping limit sharp declines.
Economists suggest that the rupee may remain volatile in the near term, depending largely on global developments and capital flows.
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