Indian Currency Breaches Lifetime Low

The Indian rupee slipped below the 88-per-dollar mark for the first time on Friday, touching a record low of ₹88.24 against the U.S. dollar. This fall broke its previous lifetime low of ₹87.95, raising alarm across financial markets.

U.S. Tariffs Put Pressure on Indian Exports

The sharp decline came after Washington announced an additional 25% tariff on Indian goods, effectively doubling the total duty to 50%. The move has triggered concerns over India’s trade outlook and the impact on its economic growth.

Market Reaction and Investor Concerns

Currency traders and investors are worried that the hefty U.S. levies will reduce India’s export competitiveness, worsening the country’s trade deficit. Market experts say the depreciation reflects a mix of tariff shock and global market uncertainty.

Expert View on Trade Balance

“Tariff-driven weakness in exports could put extra strain on India’s trade balance,” said Hari Shyamsunder, Vice President & Senior Institutional Portfolio Manager – Emerging Markets Equity at Franklin Templeton.

Outlook for Rupee and RBI’s Role

Analysts believe the Reserve Bank of India (RBI) may consider intervention if the rupee continues to weaken sharply. However, rising trade tensions, coupled with global market volatility, remain key risks for the currency in the coming weeks.