Currency watch: Rupee plunges 61 paise to all-time low of 88.19 vs greenback; FIIs add to pressure

The rupee on Friday tumbled previous the 88-per-dollar mark for the primary time, ending the day at an all-time closing low of 88.19 (provisional). The sharp fall of 61 paise got here amid escalating commerce frictions with the US, month-end greenback demand and sustained international fund withdrawals.Dealers mentioned the forex was beneath steady stress after Washington imposed steep tariffs on Indian exports, whilst weak home equities added to the pressure, PTI reported.Opening at 87.73 within the interbank foreign exchange market, the rupee slipped steadily to contact the day’s trough of 88.33 earlier than clawing again marginally to settle at 88.19. On Thursday, it had ended at 87.58 towards the buck.This is the primary event that the rupee has breached the 88-level on a closing foundation. Earlier, it had examined 87.95 intra-day on February 10, 2025, and had closed at 87.88 on August 5, 2025.“We expect the rupee to trade with a negative bias as additional trade tariffs on India by the US raise worries over India’s trade deficit. Weak domestic markets and selling pressure from FIIs may pressurise the rupee further,” mentioned Anuj Chaudhary, Research Analyst – Currency and Commodities, Mirae Asset ShareKhan.The Reserve Bank of India, in its bulletin launched a day earlier, cautioned that uncertainties surrounding US commerce insurance policies pose dangers to India’s demand outlook, although it famous that inflation projections for the close to time period look extra beneficial than anticipated.Commerce and Industry Minister Piyush Goyal mentioned the federal government would quickly announce measures to deepen India’s world commerce presence and strengthen exports. He assured exporters of full assist in dealing with the uncertainty arising from US tariffs.From August 27, the US has imposed a 50 per cent responsibility on Indian items, a transfer anticipated to hit labour-intensive segments reminiscent of textiles, leather-based, footwear and shrimp.The greenback index, which measures the buck towards a basket of six main currencies, gained 0.14 per cent to 97.94.“Dollar may continue to remain weak on rising rate cut expectations in September. Traders may take cues from prelim core PCE price index and personal spending data from the US. USD-INR spot price is expected to trade in a range of 87.90 to 88.70,” Chaudhary mentioned.In world commodities, Brent crude fell 0.76 per cent to $68.10 a barrel in futures commerce.Back residence, fairness benchmarks ended within the pink. The Sensex slid 270.92 factors to 79,809.65, whereas the Nifty dropped 74.05 factors to 24,426.85.According to trade knowledge, FIIs bought equities value Rs 3,856.51 crore on Thursday, including to the rupee’s woes.