Rupee sinks to record low: What's going on?
The Indian rupee just closed at a historic low of 90.97 against the US dollar, despite RBI's efforts to hold it up.
The dip was pushed by strong demand for dollars from metal importers, and at one point in the day, the rupee even touched 91.06.
Why should you care?
A weaker rupee means things we import—like gadgets or fuel—get pricier, which can push up inflation and make everyday life costlier.
Investors are feeling the heat too: foreign investors pulled out over ₹7,600 crore from Indian stocks this month alone, making markets sluggish and a bit shaky.
What's behind the slide?
It's not just local issues—global uncertainty is weighing heavy.
Persistent foreign investor outflows, geopolitical tensions (including renewed US expansionary signals and concern over the US stance on Greenland), and general risk aversion are all adding pressure.
As Anuj Choudhary from Mirae Asset Sharekhan puts it, "The Indian rupee traded with a negative bias and slipped below the 91-mark on risk aversion in global markets and persistent FII outflows. However, a weak dollar and intervention by the RBI prevented a sharp fall." and he expects this tough range to stick around if outflows continue.