04.06.202603:48:17UTC+00Rupee Extends Losses on Outflows

The Indian rupee weakened slightly to around 95.7 per dollar, extending its decline as persistent foreign capital outflows and broad-based softness across Asian markets undermined investor sentiment. Downward pressure on the currency intensified after foreign investors sold nearly $600 million worth of Indian equities on Wednesday, adding to roughly $3 billion in net sales over the previous three sessions. Renewed tensions between the US and Iran further dampened risk appetite, while mixed signals over potential de-escalation kept markets wary. Some support for the rupee may emerge from measures aimed at attracting overseas capital, amid reports that the government is considering abolishing capital gains tax on foreign portfolio investments in government securities. Investors are also focused on the Reserve Bank of India’s upcoming policy decision, with the central bank widely expected to leave its benchmark interest rate unchanged at 5.25%.