Rupee opens at 89.64 after RBI steps in big
The rupee opened a bit stronger at 89.64 to the US dollar on Tuesday, following a major intervention by the Reserve Bank of India (RBI) last week.
After weeks of steady decline, the RBI's move on December 17 gave the rupee its biggest single-day boost in months and set ₹90 as an important line of defense.
Why does this matter?
A weaker rupee means stuff from abroad—like gadgets, fuel, and even gold—gets pricier, which can hit your wallet.
The RBI stepped in to calm things down because a fast-falling rupee can push up inflation and make life costlier for everyone.
What's behind all this?
The rupee has dropped over 5% this year due to trade deficits, more gold imports, and global pressure like US tariff hikes under Trump.
To slow the fall (but not reverse it), RBI spent billions in the currency market and used forward contracts.
Still, with importers now buying dollars again, gains might be limited for now.