New Delhi, May 25 -- The Indian rupee has been under strong pressure this year, falling more than 6% year-to-date against the US dollar largely due to the massive foreign capital outflow amid higher crude oil prices, driven by the Middle East conflict, India's inflating import bill, and widening current account deficit, which is straining the country's fiscal position.

While each of these factors has contributed to the domestic currency's weakness, relentless selling by the foreign portfolio investors (FPIs) is the most critical factor behind the rupee's fall. And why are FPIs selling- because of earnings-growth mismatch, better opportunities outside India, and also, because they have an opportunity to exit the country.

According to glo...