Rupee Touches New Lows Against The American Dollar
Indian Rupee Hits Another Record Low Amid Trade Tensions
The Indian rupee slid to a fresh all-time low on Tuesday, breaking the previous record set just a few days earlier. Heightened trade frictions between India and the US have fuelled stronger demand for the American currency, intensifying the downward pressure on the rupee. The exchange rate dropped to 88.80 per dollar, slipping past last week’s mark of 88.7975.
On Monday, US President Donald Trump declared a 100% tariff on foreign-produced films. In a Truth Social post, he claimed, “Our film industry has been stolen from the United States by other countries, just like taking candy from a baby. California, under its weak and incompetent governor, has been hit the hardest. To fix this long-standing issue, I am imposing a 100% tariff on all movies made outside the US.”
Investor Mood and RBI Outlook
Foreign portfolio investors (FPIs) remain net sellers, putting pressure on both equities and the rupee. Uncertainty over the Indo-US trade deal has also kept investors cautious ahead of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled for September 29–October 1. A Business Standard survey suggests the MPC is likely to keep the repo rate unchanged, maintaining the status quo after holding rates in August following a 50-basis-point cut in June.
