Rupee slides to a 10-day low near 95.47 as the June trade deficit sets a record

Punjab, Sept. 12 -- The rupee has extended its losing run, with USD/INR posting a fresh 10-day high around 95.47 as oil keeps climbing. The currency touched an all-time low of 96.8 in May before recovering some ground.

The trade number underneath it

India's goods trade deficit widened to $30.43 billion in June, the widest since January and the largest ever recorded for a June. Imports rose 31% to $70.84 billion, as the war in the Middle East and US tariffs raised the price of foreign energy.

That is the mechanism in one line: expensive crude means a bigger import bill, a bigger import bill means more dollars leaving, and more dollars leaving means a weaker rupee. The currency is not falling because of sentiment. It is falling because of ...