Rupee slips 38 paise to 93.51 amid RBI tweaks, tensions
Business
The Indian rupee slipped by 38 paise on Tuesday, ending at 93.51 against the US dollar.
This drop comes as geopolitical tensions, like the ongoing U.S.-Iran conflict, shake up markets, and recent Reserve Bank of India (RBI) policy tweaks add to the uncertainty.
RBI rules spur hedging, dollar demand
The RBI's new rules have sparked more hedging activity, making things less stable for now.
Amit Pabari from CR Forex Advisors shared that while the market is slowly settling down, limits on speculation remain in place.
With importers scrambling for US dollars due to global worries and the temporary ceasefire was described as fragile and set to expire this week, dollar demand is likely to increase in the near term, making the rupee even more vulnerable in the short term.