US tariffs on India push rupee to record low
The rupee slipped by 22 paise to trade at 87.78 against the US dollar in early trade on Tuesday, after the US confirmed its plan to impose a fresh 25% tariff on Indian imports starting August 27.
This move has sparked new trade tensions and pushed up demand for dollars.
Weaker rupee could mean higher inflation
A weaker rupee means higher prices for imported goods and could push up inflation, making everyday things more expensive for everyone.
The stock market took a hit too—Sensex fell by 547 points and Nifty dropped by 179 points.
All eyes are now on the Reserve Bank of India, which might step in if things get bumpier.
Foreign investors pull out from Indian stocks
Three big reasons: hopes for a trade deal faded with the new tariffs; global uncertainty grew as Russia-Ukraine peace talks stalled; and foreign investors pulled out ₹2,466 crore from Indian stocks just yesterday.
Even though oil prices stayed steady and the dollar index dipped slightly, these factors kept pressure on the rupee.