USD vs INR, April 1 -- The Indian rupee is at a historic low level, weighing heavily on stock market sentiment due to the increased risk of a further aggravated selloff by foreign portfolio investors (FPIs).

The domestic currency hit a record low of 95.2350 per dollar on March 30. This was the first time the domestic currency breached the 95 mark. Year-to-date, the rupee is down 5.5%, while for the financial year 2026, it declined by nearly 10%.

Rupee's weakness is a major macro risk. However, its impact on sectors varies.

A weaker rupee is positive for exporters that earn in foreign currency. Sectors such as IT, pharma, and even textiles, to some extent, gain from the rupee's weakness. However, the majority of sectors feel the pain as...