Rupee falls to 88.12/$ as US Fed cuts rates
The rupee dropped by 31 paise to 88.1275 per US dollar on Thursday, snapping its recent winning streak.
This came after the US Federal Reserve cut rates by 25 basis points, making the dollar stronger worldwide and putting extra pressure on the rupee.
Weaker rupee means imports get pricier, pushes up inflation
A weaker rupee means imports—like gadgets, fuel, and even travel—get pricier for everyone in India.
It can also push up inflation and squeeze profits for Indian companies.
Ongoing uncertainty in India-US trade talks is adding to the stress, with analysts expecting the rupee to hover between 87.70 and 88.70 until a deal is reached.
Fed hints at more rate cuts coming by late 2025
The Fed hinted at more rate cuts coming by late 2025, which contributed to a stronger dollar globally.
At home, India's bond yields ticked up and market liquidity tightened as businesses paid advance taxes.
RBI to hold ₹1 lakh crore variable rate repo auction
To ease the cash crunch, RBI will hold a ₹1 lakh crore variable rate repo auction on Thursday—a move meant to support market liquidity and help steady the rupee for now.