Rupee Slide Tests RBI’s Multiple Defenses as Record Low Nears

Context: The Indian rupee is facing a severe test as it nears a record low, prompting the Reserve Bank of India (RBI) to deploy multiple defensive measures. The RBI has been aggressively trying to prop up the currency by raising interest rates, encouraging overseas deposits, and intervening in the market with billions of dollars. These efforts aim to stabilize the rupee and prevent it from hitting an all-time low.