Rupee falls more than 0.9% amid West Asia hostilities
Business
The rupee just took its steepest tumble in over two months, falling more than 0.9% in less than two days.
This drop happened amid the resumption of hostilities in West Asia.
Traders skipped hedges as importers scramble
Even though Brent crude is at $81.4, the rupee slipped below levels last seen when oil was expected to rise to $120.
Traders had bet on a stronger rupee and skipped hedging, but now importers are scrambling for dollars as oil rebounds and the US dollar strengthens.
India saw big capital inflows recently, $15 billion over the past month, but sudden shifts in market strategy have added stress.
All this highlights how quickly things can change and why stable economic policies matter for keeping the currency steady.