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Equity benchmark indices Sensex and Nifty ended the last trading session of the 2025-26 fiscal year sharply lower as the ongoing war in West Asia and surging crude oil prices kept investors’ sentiment fragile. Weak trends in Asian markets and unabated foreign fund outflows also added to the bearish trend in domestic equities.
The Indian rupee depreciated 9.88 per cent against the US dollar in FY26, marking the sharpest decline against the greenback in 14 years.
In FY12, the domestic currency declined by 12.4 per cent against the dollar at a time when the current account deficit had widened to 4.2 per cent.
In the current fiscal year, the steep depreciation was driven by persistent foreign fund outflows, elevated crude oil prices, and a strengthening dollar globally. Volatility in global financial markets and tightening liquidity conditions further weighed on the rupee in FY26.
Other Asian currencies have also seen a sharp depreciation against the US dollar, with Japanese Yen falling by 6 per cent, Philippine Peso by 5.74 per cent, and South Korean Won by 2.88 per cent since April 1, according to market participants.
