Rupee hits lowest since February as US-India trade talks stall
The Indian rupee slipped to 87.42 per US dollar—its weakest since February—after fresh concerns that the US might slap 20-25% tariffs on Indian exports if a trade deal isn't sealed by August 1.
This drop could make imports pricier and push up inflation at home.
A weaker rupee could make imports pricier and push up inflation
A weaker rupee means higher costs for everything India buys from abroad, and it could potentially make life tough for exporters and businesses.
Importers are scrambling for dollars to protect themselves, which only speeds up the rupee's slide.
If those tariffs actually kick in, things could get even bumpier for India's economy.
Foreign investors pulled out over $1.5 billion from Indian stocks
US President Trump recently said the trade deal with India isn't done yet, sparking fears of new tariffs.
The Reserve Bank of India tried to step in but couldn't stop the decline.
Plus, foreign investors pulled out over $1.5 billion from Indian stocks just this month—a move that's added more pressure on the currency.