Rupee weakens to 95.02 per US dollar after Fed holds
The rupee just slipped to 95.02 against the US dollar, its weakest point since March 30, after falling for six days in a row.
This slide is mainly because the US Federal Reserve is sticking with higher interest rates and global oil prices are spiking, making things tougher for India's economy, especially when it comes to energy imports.
Divided Fed, $123 Brent prompts hedging
The US Fed kept interest rates high in its most divided decision in decades, while Brent crude oil was trading at $123 a barrel due to tensions between the US and Iran.
These moves have investors worried about more currency swings, with importers hedging their bets and the RBI stepping in just enough to keep things from getting too wild.
As Amit Pabari from CR Forex Advisory points out, factors like oil prices, capital flows, and central bank policies are all playing a big role right now.