The Indian rupee touched a fresh record low of 86.1 per USD, pressured by a stronger dollar and higher Treasury yields. The currency has been under pressure in recent weeks due to a combination of domestic and international factors, despite efforts by the Reserve Bank of India to intervene in the foreign exchange market. Contributing factors include sluggish economic growth, persistent foreign investor outflows from Indian equities, and concerns about US economic policies under the Trump administration. Meanwhile, India's GDP is projected to grow by 6.4% in the 2024-25 financial year, down from 8.2% in 2023-24, according to the Ministry of Statistics' first advance estimates. This projection is below the RBI's 6.6% forecast for the current fiscal year and may represent the weakest growth in four years. Domestic inflation eased to 5.5% in November, within the RBI's tolerance range, supporting expectations of a rate cut by Q1 2025.