Indian rupee hits 95.14 per US dollar amid importer demand
Business
The Indian rupee just hit a historic low, trading at 95.14 per US dollar for the first time ever.
It started strong, briefly rising to 93.60, but couldn't keep up as demand for dollars from importers and big corporate moves pushed it down.
RBI change sparks $25-$35 billion arbitrage
A recent Reserve Bank of India policy change tightened how much foreign currency banks can hold, leading to a rush of arbitrage trades, worth $25 billion to $35 billion, that put even more pressure on the rupee.
Finance Minister Nirmala Sitharaman admitted the currency is under stress, but reassured everyone that India's economy and foreign exchange reserves are still solid, blaming some of the trouble on global tensions.