Rupee nears all-time low as US tariffs hit Indian economy
The Indian rupee slid to around 87.80 per US dollar on Tuesday, nearly matching its all-time low.
The Reserve Bank of India had to step in and sell dollars to keep the currency from slipping past 88.
A weaker rupee makes imports more expensive
A weaker rupee makes imports—like electronics and fuel—more expensive, which can push up prices for everyone.
This drop comes just after the US slapped a 25% tariff on Indian goods starting August 1, making things even tougher for businesses and investors.
Investors pull money out of India
US President Trump's tariff threats over India's Russian oil deals have rattled markets, leading investors to pull money out of India.
At the same time, importers are scrambling for dollars, adding more pressure.
Experts say if the rupee falls any further, we could see even more market swings ahead.