Indian rupee falls to 88.24 per US dollar
The Indian rupee took a hit on Monday, closing at 88.24 per US dollar—a 40 paise drop and its steepest single-day fall since September.
The currency wobbled throughout the day and slipped sharply in the afternoon, even though the Reserve Bank of India (RBI) was present in the market, its intervention was mild.
A weaker rupee can lead to higher inflation
A weaker rupee generally means pricier imports and higher inflation, which can affect everything from your favorite gadgets to travel plans.
It also impacts trade—key issues as India and the US discuss a potential trade deal.
Demand for dollars surged later in the day
Demand for dollars surged later in the day, pushing the rupee down despite RBI's efforts—which were less forceful than before.
Earlier hopes tied to possible tariff cuts between India and the US faded quickly, reversing any brief gains for the currency.