Rupee hits provisional low past 88 per dollar amid US tariffs

The Indian rupee plunged past the 88-per-dollar mark for the first time on Friday, closing at a provisional record low as traders and policymakers grappled with the fallout from steep new U.S. tariffs and heavy foreign capital outflows. Market reports put the rupee's provisional close between 88.09 and 88.19 against the U.S. dollar on August 29, with an intraday low of about 88.33, according to interbank trading data and forex traders.

Traders said the currency came under sustained pressure after the United States implemented additional duties that raised the effective tariff on many Indian goods to 50 percent from August 27. The new levies, announced by the White House in response to India's purchase of Russian crude, have raised concerns about the competitiveness of Indian exports to the U.S. and the prospect of a wider trade deficit. Forex dealers also pointed to month-end dollar demand and persistent foreign institutional investor selling as key drivers of the rupee's weakness.

"Market sentiment remains fragile due to the impact of U.S. tariffs and large-scale FPI selling," Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP, said, noting that foreign...