Rupee bounces back 14 paise against US dollar
After a sharp fall to an all-time low, the Indian rupee picked up 14 paise on Thursday, settling at 87.66 against the US dollar.
This quick rebound followed President Trump's announcement of a hefty 25% tariff on Indian imports and new penalties linked to Russian oil and arms deals.
What led to the rupee's fall
The rupee's biggest single-day drop in over three years came as trade tensions spiked.
The Reserve Bank of India likely stepped in to steady things, while global factors like a slight decline in oil prices and unchanged US interest rates kept the dollar strong.
Impact on Indian economy
A weaker rupee means imports—especially stuff priced in dollars like oil—get more expensive, so things could cost more here.
But there's a flip side: Indian exporters might find it easier to compete globally with a cheaper currency.
The RBI is keeping an eye out to balance these effects.