The Indian rupee improved slightly, moving past 83 per USD, up from its record-low of 83.2 on September 6th. The modest gain is attributed to a pullback in the USD as markets closely watch the central bank’s policy outlook. Despite this, the rupee has struggled to recover, mainly due to surging global energy prices, which have increased the demand for rupees for oil and gas imports, exerting downward pressure on the rupee. Additionally, the hawkish outlook from the bank has affected government securities prices and rupee-denominated equities, leading to increased capital outflows from India and offsetting the currency support gained from higher interest rates.