The rupee's slide towards 96 against the US dollar — and the Reserve Bank of India's intervention to stop it — has been one of the market stories of the week. Here is what is happening and why it matters.

**What happened:** On September 30, the rupee approached 96 in morning trade. The RBI sold dollars through state-run banks, and the currency closed 13 paise higher at 95.81.

**Why is it falling?** Foreign investors pulled 25,662 crore rupees out of Indian equities in September. The US dollar is strong, and the US 10-year bond yield is at 5.24 percent — its highest since 2007 — drawing money away from emerging markets.

**What does it mean for you?** A weaker rupee makes imports — especially crude oil — costlier, feeding fuel prices and inflation, and makes foreign education and overseas travel pricier. Exporters and IT firms earning dollars benefit.

**What next?** The RBI is expected to keep defending 96 while letting the rupee adjust gradually. Its path depends on foreign flows and US rate signals.