Why is the Indian rupee sliding against the US dollar
The Indian rupee dropped to 87.95 against the US dollar in early trade on Monday, mainly because global crude oil prices are rising again—thanks to renewed hopes for a US-China trade deal.
When the rupee weakens, things like fuel and imported goods can get pricier, which can affect everyone's wallet.
A weaker rupee can push up inflation
A weaker rupee means higher costs for importing essentials like oil, which can push up inflation and impact company profits.
Still, India's foreign exchange reserves actually grew by $4.5 billion last week to $702.28 billion—a sign that the country has some financial cushion even as the currency slides.
Foreign investors bought ₹621 crore worth of Indian stocks
Despite the rupee's dip, India's stock markets stayed upbeat: Sensex jumped 272 points and Nifty rose nearly 89 points in early trading on Monday.
Foreign investors also bought ₹621 crore worth of Indian stocks on October 24, showing they're still confident in the market despite currency swings.