Rupee Hits Record Low The Indian rupee has plummeted to a **record low** against the dollar, driven by a sharp increase in global risk aversion. Market sentiment is deteriorating as investors flee risk assets. A primary driver of this volatility is the unwinding of the **Yen carry trade**. Rising yields in Japan are squeezing global liquidity, forcing a rapid exit from emerging market positions. Consequently, foreign outflows are accelerating. Domestic markets are under significant pressure, with heavy selling reported across both **local stocks and bonds**. Notably, the **Reserve Bank of India** remained on the sidelines. The central bank's absence from the market allowed the currency’s losses to deepen unchecked amid the broader sell-off.