Over the past year, the Indian rupee has experienced significant depreciation against multiple major currencies, with its steepest decline of over 25% against the Australian dollar. The rupee has also weakened against the Chinese yuan and the Euro, while showing some resilience against the Japanese yen. This decline is largely attributed to rising crude oil prices, which have surged above $125 a barrel, and substantial foreign institutional investor (FII) outflows, which reached $7.5 billion in April alone, contributing to a total of over $20 billion year-to-date. The Reserve Bank of India’s efforts to stabilize the currency have been overwhelmed by increased dollar demand from oil importers. The rupee's recent drop to a record low of ₹95.33 against the US dollar reflects both trade and capital account pressures. Analysts suggest that while the rupee is not in a structural crisis, it faces intense cyclical pressures from external economic forces. The future trajectory of the rupee will depend on oil prices, geopolitical developments, and the flow of foreign capital.