Overview

• The rupee settled at 88.44 to the dollar on Thursday, its weakest ever closing level, after falling as low as 88.46 intraday.
• Bank and importer demand for dollars picked up on uncertainty over U.S. tariffs on Indian goods, with treasury officials citing no RBI intervention during the session and some expecting action closer to 88.50.
• The currency had hovered near 88 earlier in the week, briefly firming to about 87.95 on Tuesday before slipping back as gains failed to hold.
• Foreign portfolio investors have withdrawn a net $346.21 million from Indian markets so far in September, adding to pressure on the rupee.
• Comments from President Donald Trump and Prime Minister Narendra Modi pointed to ongoing trade talks, but analysts say tariff overhang and upcoming U.S. CPI keep INR moves contained for now.