India struggles to stabilise rupee as war creates depreciation pressure

India's central bank faces mounting challenges in maintaining rupee stability as geopolitical tensions in the Middle East intensify currency depreciation risks. The Reserve Bank of India's foreign exchange reserves have experienced significant contraction, reflecting the economic impact of regional instability. Despite interventionist policies, the RBI demonstrates reluctance toward allowing market-driven currency fluctuations, opting instead for active management strategies. This approach aims to protect domestic economic interests while navigating complex global financial dynamics.