Rupee hits record low of 88.4425 against the dollar as tariff and trade uncertainty weigh

Indian rupee

The Indian rupee touched a record low of 88.4425 against the US dollar during the afternoon trade, owing to tariff-related concerns.

As of 2:20 pm, the local currency was trading at 88.4425 against the dollar, down 34 paise from previous close, after opening at 88.1288/USD.

The Reserve Bank of India has in recent past intervened to arrest the slide in rupee, and market participants believe the central bank may again get active by selling dollars to ease volatility.

Rupee’s weakness has come on a day when Asian peers too have been lower, despite the expectations that the US Federal Reserve will likely cut rates next week. Asian currencies logged small losses on September 11, with the South Korean won down 0.32 percent, Japanese Yen was down 0.30 percent, Singapore Dollar was down by 0.16 percent, and Philippine peso fell 0.13 percent.

Trump's recent steep tariffs have hurt India's export outlook, making the path ahead for currency less clear. To offer support to exporters and to spur domestic consumption, Prime Minister Modi recently rolled out a GST cut.

Both Trump and Modi are also hopeful of continued negotiations to resolve pending trade issues.