Rupee's valuation hits over-a-decade low: Currency hurt by Middle East war, FPI outflows

Rupee has hit a decade-low against global peers, driven by soaring oil prices and significant foreign investor withdrawals. This depreciation, reflected in a weakened Real Effective Exchange Rate, makes exports cheaper but imports costlier. Despite the current undervaluation, a swift recovery is not anticipated due to sustained dollar demand.

By TOI BUSINESS DESK