The Indian Rupee showed a bearish trend as foreign portfolio investors withdrew approximately $6.3 billion, pushing the USD/INR exchange rate above the 96.00 level, according to FX Street.
Despite the selling pressure, the Reserve Bank of India (RBI) provided support to the currency. DBS Bank’s Radhika Rao highlighted that onshore financial markets are feeling the strain from broader global developments, which contributed to the rupee's weakness.
For Japanese investors, the rupee's recent movements underscore the volatility in emerging markets, especially given the interconnectedness of global capital flows and their impact on currency pairs like USD/INR.