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<h1>Currency depreciation driven by foreign outflows and dollar strength pressures the rupee; central bank action may limit further decline.</h1> The rupee closed lower driven by substantial foreign portfolio outflows and a recovery in the US dollar index, amplified by foreign banks' dollar buying and importers' demand; domestic equity weakness added negative bias while declines in US Treasury yields and lower crude prices partly cushioned the fall. Analysts indicate the rupee's trajectory will depend on external flows, dollar momentum, and potential Reserve Bank of India intervention, concurrent with reported increases in India's foreign exchange reserves.