Rupee sinks to record low, breaches 88-mark on US tariff worries

Indian Rupee

The rupee fell to a record low in the afternoon trade on August 30 on concerns over the impact of the 50 percent tariffs imposed by the US on Indian goods.

The local currency fell to 88.1000 against the US dollar after opening at 87.6963.

“The Indian rupee falls to its lowest level amid tariff fears, MSCI outflow, fixing dollar bids and month-end demand. The RBI is present but is not changing the direction of the currency,” said Anil Kumar Bhansali, who is head of treasury and executive director at Finrex Treasury Advisors LLP.

The rupee opened 6 paise lower after a surge in the dollar index, as foreign selling in equities and the economic impact of US tariffs weighed on the sentiment.

The rise in dollar index comes as data showed the inflation-adjusted US GDP expanded faster than initially estimated in the second quarter, underscoring resilience in consumer spending.

US treasury secretary Scott Bessent on August 28 repeated President Donald Trump’s criticism of India “profiteering” from Russian oil purchases, while voicing optimism that New Delhi and Washington would eventually reach an agreement despite the imposition of steep tariffs.

“At the end of the day, we (India and the US) will come together,” Bessent told Fox Business Network, as Washington’s 50 percent tariffs on Indian goods took effect.

(With agency inputs)