<h1>Rupee volatility driven by FPI outflows, trade deficit pressures and oil prices, affecting export competitiveness and import costs.</h1> Rupee volatility stems from large-scale FPI selling, an increasing trade deficit and India-US trade uncertainty, while lower Brent crude prices have intermittently supported the currency. Government statements note that exchange rate depreciation can boost export competitiveness but may raise import prices, with domestic price effects contingent on pass through from international commodity prices.