India, Jan. 1 -- The Indian rupee, swaying through multiple headwinds, tiding over global trade disruptions and massive foreign fund outflows, is unlikely to arrest its descent until tariff impact overhangs, notwithstanding robust domestic macroeconomic tailwinds.

The Reserve Bank of India (RBI), which sees the rupee's depreciation as a silver bullet to offset the tariff shock, expects the currency to find its stable course once India reaches a trade deal with its largest trading partner, the US.

The Indian currency has sunk nearly 5 per cent since the 85-per-dollar level in January and even breached the historic low of 91 against the greenback. During the year, the rupee's exchange rate has weakened by over 19 per cent against the euro...