Rupee hits a new low of 88.45 against dollar amid trade turmoil

MUMBAI: The rupee closed weaker on Thursday, settling at 88.44 against the dollar, in contrast with 88.10 within the earlier session, marking a recent document low. The foreign money opened at 88.12, touched a excessive of 88.09 and a low of 88.45 in the course of the day, slipping previous its earlier low of 88.36 hit final week.The decline comes amid persistent overseas outflows of over $11 billion this 12 months and mounting stress from US tariffs, which have dented investor confidence and clouded India’s trade outlook. Exporters stay unsure about order flows whereas importers are hedging extra aggressively, intensifying demand for {dollars}.Traders stated RBI has been intervening by promoting {dollars} to clean volatility however shouldn’t be defending any specific degree. The rupee’s weak spot contrasts with most regional friends, which have discovered assist from expectations of a Fed charge reduce. However, sentiment across the Indian foreign money stays fragile, with tariff pressures on labour-intensive sectors more likely to hold it underneath pressure.“Rupee traded weak by 0.35% at 88.40 as mixed FII flows and a firmer dollar index kept pressure intact. Focus remains on the US CPI data, which could drive volatility in the dollar and in turn the rupee,” stated Jateen Trivedi, VP analysis analyst, LKP Securities.