Rupee bounces back after RBI steps in
The Indian rupee made a strong comeback last week, climbing over 2% from its record low of 91.075 to close at 89.27 against the US dollar.
This rebound is thanks to the Reserve Bank of India (RBI) jumping in to steady things.
Why does this matter?
A stronger rupee helps keep prices in check and makes life easier for businesses dealing with imports and exports.
With India facing a big trade deficit, this move by the RBI brings some much-needed stability.
How did the RBI pull it off?
The RBI sold dollars through public banks, pumped ₹1.45 trillion into the economy, and used spot and forward market interventions, including forward contracts, to slow down the rupee's fall.
Traders quickly adjusted their bets, which helped keep things calm even as global pressures like US tariffs and foreign investment outflows loomed large.