Rupee opens at 88.05 against US dollar
The rupee started Tuesday stronger at 88.05 against the dollar, boosted by a dip in the dollar index just as the US Federal Reserve kicked off its big meeting.
Markets are buzzing about a possible rate cut—the first such move in nine months—which could shake up currency values.
Rate cut could mean cheaper imports and more expensive exports
If the Fed cuts rates, it is generally expected that borrowing could become cheaper in the US and dollars might flow into markets like India.
This might potentially make Indian exports more attractive but also means imports—like oil—could cost more.
With global uncertainty and the rupee near record lows, these economic shifts could impact everything from shopping bills to travel plans.
Fed's rate cut meeting begins today
The Fed is expected to trim rates by 0.25% to fight slow job growth and stubborn inflation, with President Trump urging even bigger cuts.
While a weaker dollar is anticipated to affect global markets, all eyes are on what happens next this week.