The Indian rupee’s usual calm snapped this week, with its one-month implied volatility hitting 4.09%. For a currency that’s spent most of the year as a poster child for low volatility, this spike feels like a plot twist. This speculation gains weight under the watch of new RBI Governor Sanjay Malhotra, who’s yet to reveal his cards on forex intervention. It’s worth noting that while the rupee dipped 0.7% to a new low last Friday, it remains a low-volatility player compared to other Asian currencies like the Chinese yuan and Malaysian ringgit. However, the rupee isn’t without its challenges. Pressure on the yuan, potential U.S. tariffs, and signs of slowing local growth are casting shadows. Add to that India’s trade-weighted real effective exchange rate touching a record high, signaling an overvaluation north of 8%, and it’s clear the currency faces a tricky path ahead.