India, June 17 -- Indian rupee is trading above 95 a dollar, having depreciated over 7 per cent in 2026 alone. Since 2025, it has been the worst-performing currency in Asia, even Pakistani rupee has performed better despite the economic turmoil in that country.

The rupee had touched an all-time low of 96.84 against the dollar on May 20, and the ominous 100-mark now looms within sight. There are several factors that affects the like G-Sec yield spread between India and US and the inflation differential, which in fact are narrowing because of India's strong macroeconomic performance. The current fragility of the rupee is largely due to India's extensive energy dependence and the disruption of the Iran War.

India imports almost 90 per cent...