Rupee sinks to all-time low against US dollar
The Indian rupee dropped to a record 90.97 against the US dollar on Tuesday, with sources noting strong dollar demand from metal importers and higher Brent crude prices.
Why does this matter?
The rupee weakened, and it rattled the stock market—Sensex fell over 1,000 points while Nifty lost 353 points.
Big foreign investors pulled out thousands of crores, spooked by global uncertainty and hints that the US might keep money policies loose.
What's behind the drop?
Strong demand for dollars from importers, foreign investors selling off Indian stocks, and shaky global politics have all weighed down the rupee.
The Reserve Bank of India has stepped in to slow the fall, but volatility remains high.
What's next?
Analyst Anuj Choudhary of Mirae Asset ShareKhan expects the rupee to hover between 90.70 and 91.25 for now as markets watch US trade moves and oil prices—Brent crude is at $63.94 a barrel—which could keep things unpredictable for a while.