Rupee slips to over 2-month low amid portfolio outflows; RBI likely to intervene

The Indian rupee declined to its weakest level in more than two months on Tuesday, driven by sustained foreign portfolio outflows from domestic assets. The currency weakness has triggered expectations of possible intervention by the Reserve Bank of India to stabilize the exchange rate.

Analysts anticipate the rupee will face cautious depreciation in the coming year. However, positive capital inflows into India's foreign reserves are expected to provide some support to the currency outlook.