Rupee Slides to Record 88 on Tariff Jitters and Equity Outflows

The Indian rupee slid past 88 to the US dollar on Friday, the weakest level on record, as investors braced for the economic impact of Washington’s recently imposed 50% tariffs on Indian exports. The currency fell about 0.5% intraday after briefly touching 87.96 earlier in the session, surpassing its previous low and extending a week-long spell of depreciation. Market participants said heavy equity outflows and fragile sentiment amplified the sell-off. Foreign investors have withdrawn more than $1 billion from local shares over the past two sessions, while the benchmark Nifty 50 and Sensex indexes remained range-bound after a near-2% drop earlier in the week. Traders expect the Reserve Bank of India to defend the currency near the ₹87.80–₹88 band, pointing to recent dollar sales that have tempered losses and left the rupee only marginally lower for the week. Forward-market pricing indicates the RBI may continue intervening as global investors await US inflation data and clarity on the Federal Reserve’s rate path.