The Indian rupee has been under intense selling pressure, primarily due to external shocks and domestic vulnerabilities. The recent geopolitical tensions in the Strait of Hormuz, following US-Israeli strikes on Iran, have significantly impacted energy prices, which are crucial for India as a major energy-importing nation. This disruption has led to a higher import bill and a deteriorating current account, a key factor in currency weakness. Additionally, the strengthening of the US dollar during periods of geopolitical stress has further pressured the rupee and other emerging market currencies. High inflation in India, driven by increased fuel and food costs, diminishes the attractiveness of rupee-denominated assets for foreign investors, leading to capital outflows. The Reserve Bank of India (RBI) has intervened in the currency market, indicating that it perceives the pace of the rupee's depreciation as disorderly and is willing to utilize its foreign exchange reserves to restore stability. This intervention reflects the RBI's commitment to managing the currency amidst ongoing structural challenges.