Indian rupee gains 73 paise against US dollar
On Wednesday, the Indian rupee shot up by 73 paise to close at 88.0750 per US dollar—its biggest one-day rise in almost four months, as per RBI data.
This jump came after the RBI stepped in through state-run banks, selling dollars to calm the market and strengthen the rupee, rebounding sharply from recent lows.
A stronger rupee could mean cheaper imports
A stronger rupee could mean cheaper imports (especially oil), and that's good news for prices back home.
It also helps boost investor confidence, which has been shaky lately.
The RBI's quick action signals they're serious about keeping the currency stable and inflation in check.
Factors behind the rupee's rise
The rally kicked off after US Treasury Secretary Scott Bessent talked up closer India-US trade ties, sparking hopes for a new deal.
Dovish signals from the US Federal Reserve and a weaker dollar made emerging market currencies like the rupee more attractive.
Plus, falling crude oil prices helped lower India's import bills, opening the door for the rupee to possibly strengthen further.