Rupee dips to 91.91 against the dollar—here's what's up
The rupee slipped to 91.99 per US dollar on Wednesday, continuing a rough patch marked by recent paise-level declines.
High demand for dollars and global tensions are putting extra pressure on the currency.
Why does this matter?
A weaker rupee means imports—especially oil—get pricier, which can push up inflation and make things costlier for everyone.
It may weigh on equity markets and increase demand for dollars.
CR Forex's Amit Pabari says if things get worse, the RBI might step in to steady the ship.
What's driving the fall?
The US Federal Reserve kept interest rates steady, making the dollar more attractive worldwide.
Add in rising oil prices and ongoing geopolitical worries, and foreign institutional investors were net buyers on Wednesday, purchasing equities worth ₹480.26 crore, while Sensex and Nifty opened lower.