Rupee hits new low of 89.01 per US dollar
The Indian rupee just slipped past 89 per US dollar for the first time ever.
This drop is linked to limited action from the RBI and concerns about new US tariffs, making things tougher for banks, importers, and companies dealing in foreign currency.
Importers and companies feel the pinch
If you're into business or travel—or just watching prices—this affects you.
Importers with unhedged positions are seeing bigger losses, while companies using complex hedging tools like "Seagull" structures are facing more earnings swings.
Since March, the rupee has fallen 3.3%, and analysts suggest this shows the RBI may be allowing some depreciation to help exporters affected by tariffs.
What next for the rupee?
The RBI is playing it safe for now since inflation isn't spiking and hopes US tariffs won't last long.
But all eyes are on a key US jobs report coming September 5—if hiring slows down there, we might see rate cuts that could ease pressure on the rupee.
Analysts warn that weak risk management by some companies could mean more trouble ahead if currency swings keep up, so everyone's watching how the RBI responds in these unpredictable times.