Rupee bounces back, gains 88 paise against US dollar
The Indian rupee made a strong comeback on Wednesday, rising 88 paise to ₹87.93 against the US dollar after hitting an all-time low the previous day.
This turnaround followed signals from the US Federal Reserve about possible rate cuts in the current year, which contributed to a weaker dollar index.
A stronger rupee can help keep inflation in check
Economists note that typically, a stronger rupee means cheaper imports—think lower fuel prices and less pressure on inflation.
This can help keep everyday costs in check and support India's economic stability.
Generally, a stronger rupee also influences how attractive India looks to global investors and how competitive Indian exports are.
Sensex climbs over 350 points
The rupee's rise was boosted by a weaker dollar index after Fed Chair Jerome Powell hinted at rate cuts amid rising US joblessness.
Falling global crude prices and some timely moves from the Reserve Bank of India also helped.
Meanwhile, the Sensex climbed over 350 points, showing some market optimism even as foreign investors pulled out funds.