Rupee slides past 96 mark as dollar strengthens; experts debate if 100 is inevitable

India's rupee has depreciated past the ₹96 mark against the US dollar, driven by elevated US Treasury yields, rising oil prices, and outflows of foreign portfolio investment. The strengthening dollar adds further pressure on the domestic currency.

The RBI faces a difficult choice between intervening to support the rupee and managing concerns about foreign exchange reserves, inflation, and external vulnerabilities. The IMF has suggested India can allow the exchange rate to absorb external shocks naturally.

Economists are divided on whether gradual depreciation could boost India's export competitiveness without triggering imported inflation. Market watchers debate whether the psychological level of ₹100 per dollar is inevitable or can be contained.