The Indian rupee is likely to remain under pressure in the short term, trading within a range of 84-84.5 per US dollar, as per a report by Bank of Baroda.

The report attributes this temporary weakness in the rupee to two key factors: foreign portfolio investor (FPI) outflows and the strengthening of the US dollar. It stated, “The Indian rupee is likely to remain under pressure in the near term. This is due to two inter-related factors—FPI outflows and dollar strength.”