The Indian rupee continues to lose value. Yet, economists believe it is still overvalued based on the real effective exchange rate (REER). Since November, the rupee has fallen about 2 percent. Experts expect the rupee to stay under pressure until clarity on Donald Trump’s policy decisions. Inflation trends will also affect the rupee’s valuation.
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The ongoing correction is driven by a mix of valuation concerns, muted earnings growth, and global macro uncertainties. Rising geopolitical tensions and the risk of