Rupee hits record low against dollar: What it means
The Indian rupee inched up to 88.71 against the US dollar on Wednesday, bouncing back slightly after hitting its lowest ever close the day before.
Still, it's feeling the squeeze from new US tariffs and an H-1B visa fee hike issue.
A weaker rupee means higher prices for imports
A weaker rupee means higher prices for imports—think gadgets, fuel, and even everyday essentials—which can push up inflation at home.
The uncertainty has also spooked investors: over ₹3,500 crore worth of stocks were sold off on Tuesday, dragging down both Sensex and Nifty.
US tariffs and H-1B visa fees hike are main culprits
The main culprits are recent US moves—higher tariffs on Indian goods and a hike in H-1B visa fees that hit Indian professionals hard.
Some relief could come from falling crude oil prices or if India's central bank steps in.
Meanwhile, Commerce Minister Piyush Goyal is in the US trying to ease these trade tensions and steady things for now.