Mumbai, September 5, 2025 — The Indian rupee tumbled to a fresh record low on Friday, settling 15 paise down at ₹88.27 per U.S. dollar, despite a weaker greenback and falling crude oil prices.
At the interbank foreign exchange, the local currency opened at 88.11, slipped to an intra-day low of 88.38, and finally closed at its weakest-ever level of 88.27. On Thursday, the rupee had ended at 88.12, while its previous all-time closing low of 88.15 was recorded earlier this week on September 2.
Forex traders attributed the fall to sustained foreign fund outflows and renewed speculation about additional U.S. tariffs on Indian exports, particularly in the IT sector. The rumors, reportedly linked to the Trump administration, briefly shook equity and currency markets, even though they were later denied.
“The rupee failed to recover after the clarification, suggesting underlying weakness. Persistent selling by foreign portfolio investors is adding pressure,” said a market analyst.
Traders also pointed out that the Reserve Bank of India (RBI) likely intervened to prevent a sharper slide, but the central bank’s efforts could not offset broader bearish sentiment.
On the global front, the dollar index fell 0.31% to 98.03, while Brent crude slipped to $66.82 per barrel, developments that usually support the rupee. However, domestic vulnerabilities overshadowed these positives.
