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09.09.202508:57:29UTC+00Indian Rupee Struggles at Record Low

The Indian rupee remains weak, trading close to 88 per dollar, as it faces pressure due to the imposition of significant US tariffs, maintaining its position near historic lows. This situation arises after the United States imposed a 50% tariff on major Indian exports starting August 27, accusing India of taking advantage of discounted Russian oil. Although a generally weaker dollar provided some relief, ongoing importer demand and portfolio outflows are expected to continue exerting pressure on the rupee. The Reserve Bank of India's interventions have moderately slowed the currency's decline, yet experts suggest that the central bank is unlikely to utilize its reserves aggressively. Moving forward, the focus shifts to the upcoming US inflation data this week, which will help assess the impact of tariffs on prices. Additionally, India's Consumer Price Index (CPI) figures, set to be released this Friday, will offer insights into domestic price trends.

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