Rupee Hits Record Low On Mounting U.S. Tariff Pressure
The Indian rupee slipped past the ₹88-per-US-dollar mark for the first time, reaching a historic low amid escalating concerns about new U.S. tariffs on Indian imports. Markets are reeling from the added duties, which raise total tariffs to 50%.
Growth Expectations Take A Hit
Despite India’s strong 6.5% to 7.8% GDP growth earlier in the year, analysts warn that the steep tariffs could shave off up to a full percentage point, straining key sectors like textiles, gems, jewelry, leather, and shrimp.
RBI Intervenes, Outflows Add Pressure
The Reserve Bank of India intervened in the forex market, helping the rupee stabilize slightly after its drop to ₹88.29. However, sustained foreign investor outflows—almost $10 billion this year—combined with fragile sentiment continue to weigh heavily.
Regional Currency Weakness And What Lies Ahead
With a 3% depreciation, the rupee is Asia’s worst-performing major currency in 2025. Economists expect continued vulnerability, with the possibility of further declines toward the ₹89 mark unless trade tensions ease.
