View: Rupee at 100 will be a harsh check on India’s ambitions

The rupee’s depreciation to a record low against the dollar, exacerbated by the Iran conflict, highlights India’s economic vulnerabilities. The Reserve Bank of India’s (RBI) attempts to stabilise the currency, including interest rate hikes and currency controls, risk stifling growth. A weaker rupee increases the cost of living, particularly for the middle class, and strains the government’s finances, impacting infrastructure funding and potentially leading to higher borrowing costs for businesses.