Mumbai, April 13: The Indian rupee weakened sharply on Monday, declining by 56 paise to close at 93.39 against the US dollar, reflecting pressure in the foreign exchange market amid global uncertainties.
Market experts also pointed to outflows by foreign investors and cautious sentiment in global markets as contributing factors behind the decline. Ongoing geopolitical tensions and uncertainty in international trade have further added to volatility in currency markets.
Despite the decline, analysts believe that intervention by the Reserve Bank of India (RBI) may help limit excessive fluctuations and stabilize the rupee in the near term.
The weakening rupee could have mixed effects on the economy. While it may increase import costs, especially for fuel, it can also benefit exporters by making Indian goods more competitive in global markets.