Rupee hits 2 month low 96.4450 as oil nears $90
The Indian rupee just dropped to its lowest point in two months, closing at 96.4450 against the US dollar on Monday.
This dip happened because global oil prices are nearly $90 a barrel, thanks to rising tensions in the Middle East.
The rupee briefly touched 96.5250 before bouncing back a bit by the end of trading.
RBI sold USD, steadied rupee
To keep the rupee from sliding further, the Reserve Bank of India jumped into action, selling US dollars through state-run banks and helping steady the currency.
By day's end, the rupee was down just 0.2% from its previous close, showing how RBI is working hard to keep things stable during these unpredictable times.
High oil prices risk India's growth
India relies heavily on imported oil, so high prices can hit hard, affecting growth and making everyday stuff more expensive.
With energy costs rising globally, central banks might tweak their policies soon; markets are expecting rate hikes both in India and abroad over the next year.