Rupee at 100 Will Be a Harsh Check on India’s Ambitions

Long before the first missiles were fired in the Middle East, the warning signs of a 2013-style capital exodus were visible in the gap between India’s ambitions and economic resources. Once the Iran war revived the dollar’s safe-haven appeal, the bottom gave way under the rupee.

Asia’s worst-performing currency over the past year weakened through a key psychological barrier of 95 against the greenback to hit a record intraday low of 95.12 on Monday. The conflict in the Persian Gulf is the trigger for the unusual weakness, but the fragility is domestic.