Rupee bounces back from record low: What it means
The Indian rupee made a strong comeback on Wednesday, jumping 88 paise from its record low to trading at 88.33 against the US dollar—its biggest intraday jump in nearly four months.
This turnaround came after US Fed Chair Jerome Powell hinted that interest rate cuts could be on the way this year.
Why the sudden jump?
A stronger rupee can help keep import costs and inflation in check—good news for anyone who buys things that come from abroad or just wants prices to stay stable.
Plus, positive vibes from ongoing US-India trade talks and falling oil prices are giving the economy a boost.
What next for the rupee?
The Reserve Bank of India stepped in to support the currency both at home and overseas.
Experts say if the rupee stays above 88.10, it could head toward 87 soon.
As Anil Kumar Bhansali of Finrex Treasury Advisors puts it, "The rupee is likely to trade between 87.80 and 88.20 against the dollar this week."