Rupee drops 18 paise against US Dollar
The rupee slipped 18 paise to close at 85.94 against the US dollar on Wednesday, mainly because the dollar got stronger globally and markets are waiting to see what happens in India-US trade talks this week.
A weaker rupee means imports pricier
A weaker rupee means imports—like crude oil—get pricier, which can push up inflation and make everyday goods cost more.
Even though foreign investors bought ₹120 crore worth of Indian stocks on July 15, currency swings like this can rattle market confidence.
US dollar gaining strength globally
The US dollar is gaining strength as investors expect the Federal Reserve to keep interest rates high after seeing recent inflation data.
That's putting pressure on currencies everywhere, including ours.
The only silver lining: slightly cheaper global oil prices and fresh foreign investment gave the rupee a bit of support today.