The Indian rupee tested a series of record lows recently and has become Asia’s worst performer this year amid nearly $9 billion of outflows from the nation’s equities. It’s seen extending losses after the central bank last week cut interest rates and the US dollar continues to show strength. “With the RBI maintaining its FX stance, we see a risk of rupee underperformance, as the central bank may continue to favor building a substantial FX reserves buffer,” according to Nomura. Friday’s RBI rate cut was overshadowed by market concerns about the central bank’s tepid GDP growth guidance and neutral stance on liquidity. However, there was some relief for banks as Governor Sanjay Malhotra deferred the proposed rules on liquidity coverage ratio and project finance, providing lenders with more headroom for lending. Still, banking shares fell, reflecting broader concerns about a slowing economy, as the sector is often seen as a proxy for overall growth. A section of the market is hopeful that the tax breaks in the budget should boost both consumption and savings.