Rupee slips to 95.95 against US dollar as RBI intervenes
Business
The rupee slipped to 95.95 against the US dollar on Monday after global oil prices shot up, thanks to stalled U.S.-Iran talks and fresh Middle East tensions.
To keep things from getting worse, the Reserve Bank of India stepped in to stop the rupee from dropping past 96.
India forex reserves down $15 billion
RBI's move helped calm market jitters, but it came at a cost: India's foreign exchange reserves fell by $15 billion.
The Nifty 50 index dropped more than 1%, and government bond yields ticked up.
With Brent crude hitting $107 a barrel and India importing nearly 90% of its oil, global events like stalled U.S.-Iran talks and heightened Middle East tensions are making things even trickier for the economy.