Rupee headed to 100? How much the psychological red line matters

India's rupee has slipped past ₹96 as high US Treasury yields, elevated oil prices and foreign portfolio outflows strengthen the dollar. The IMF says India can allow the exchange rate to act as a shock absorber, while the RBI weighs intervention against reserves, inflation and external risks. Experts debate whether gradual depreciation could improve competitiveness without triggering imported inflation.