Explainer: Why Indian rupee hit an all-time low against dollar
The Indian rupee just clawed back some ground to 87.66 against the US dollar after hitting an all-time low of 87.80 on Wednesday.
The big dip came after the US threatened a hefty 25% tariff on Indian exports, mainly because of India's deals with Russia for oil and arms.
A weaker rupee can affect everything from gadgets to travel
A weaker rupee doesn't just sound bad—it hit the stock market too, with the Sensex dropping 582 points and foreign investors pulling out ₹850 crore in one day.
When the rupee swings like this, imports get pricier and inflation risks go up, which can affect everything from gadgets to travel.
RBI steps in as demand for dollars spikes
The Reserve Bank of India stepped in to calm things down as demand for dollars spiked—especially from oil companies bracing for possible US sanctions on Russia.
Plus, since the US Federal Reserve kept interest rates steady, the dollar got stronger globally, putting extra pressure on currencies like ours.