Market participants attributed the decline to heightened geopolitical tensions over Greenland, which have stoked concerns about potential US–Europe trade friction. Investors sought safe-haven assets, while the rupee came under additional pressure despite intervention by the Reserve Bank of India.
Currency traders noted that the rupee’s existing vulnerabilities make it particularly sensitive to global shocks. “The rupee is already under strain, so risk-off events hit it harder than many other Asian currencies,” said one trader.
Analysts said the currency’s movement will remain closely watched in the coming sessions, with global developments continuing to influence its trajectory.
