Rupee falls to all-time low of 88.44 versus US dollar amid tariff concerns

Rupee at Record Low: Rupee dropped to a new low of Rs 88.44 against the US dollar on Thursday, surpassing last week’s record of Rs 88.36, Zee Business reports. This decline comes as US tariffs continue to put pressure on India’s economy, shaking investor confidence.

While many Asian currencies have been buoyed by hopes of an upcoming rate cut by the US Federal Reserve, the rupee remains under stress. Foreign investors have pulled out nearly $11.7 billion from Indian markets this year, affecting demand for the rupee.

The tariffs, which came into effect last month, have hurt India’s trade prospects and growth outlook. To cushion the blow, the government recently reduced consumption taxes. Talks between India and the US are ongoing, but uncertainty still lingers, especially for exporters who are seeing unpredictable orders. Importers are also hedging their currency risks more aggressively, upsetting the usual balance in the forex market.

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The Reserve Bank of India has been actively stepping in, selling dollars to prevent the rupee from falling too fast. Officials say these measures are meant to keep things stable, rather than defending any specific exchange rate level.

Unlike many of its Asian neighbors, the rupee continues to face challenges, reflecting the unique pressures India is under amid global trade tensions and capital flight. With more negotiations ahead and a US interest rate decision looming, the rupee’s path remains uncertain.