US tariffs on India push rupee to record low
The Reserve Bank of India just sold $5 billion this August to help stop the rupee from sliding, right after the US doubled tariffs on Indian goods to 50%.
The rupee took a hit, dropping to 87.89 per dollar—a big deal for anyone watching global markets.
This marks a shift from RBI Governor Sanjay Malhotra's usual cautious style since he took over in December.
RBI's subtle approach
Instead of just dumping dollars, the RBI used non-deliverable forwards—a more subtle way to guide the rupee without causing panic.
Still, India's foreign exchange reserves dropped by $9.3 billion by August 1, their sharpest fall since November.
With the rupee down over 2% this year, it's now among Asia's weakest currencies—showing just how tough global trade tensions are getting for India.