Rupee Slumps To Lifetime Low Amid US Tariff Pressure
The Indian rupee dropped to a record low of around ₹88.44 per U.S. dollar on September 11, 2025, extending losses under pressure from U.S. tariffs on Indian goods.
Tariff Concerns Fueling The Drop
Investors are uneasy over Washington’s newly imposed tariffs, which have raised concerns about India’s export competitiveness and trade balance. These tariff actions are seen as adding strain to foreign exchange inflows.
Market Reactions And RBI Steps
Foreign investors have pulled funds from Indian equity and debt markets. In response, the Reserve Bank of India has intervened in the currency market to tame volatility, though it has not adopted an official exchange rate target.
Broader Economic Impact
The rupee’s fall is increasing costs for importers. Exporters may benefit slightly from a weaker currency, but uncertainty over tariffs and trade policy is clouding sentiment. Analysts warn that the weakness could persist in the near term unless trade tensions ease.
