Why is the Indian rupee weakening

On December 16, the Indian rupee’s exchange rate slid past the 76-per-U.S.-dollar-mark for the first time since June 2020 and stood at 76.25. It had fallen beyond 76 in March 2020 when COVID-19 cases surged and economies came to a grinding halt. However, this time its fall was driven by a widening trade deficit and foreign investors pulling out funds from equities.
India’s trade gap widened to a record high of $22.9 billion on account of rising in imports. Foreign portfolio investments (FPI) also plunged for the third consecutive month, thus weakening the rupee further. But the rupee’s fall is modest when compared to the currencies of other emerging economies.