Key Facts
• September 11: Indian Rupee hit a record low of 88.44 against the U.S. Dollar.
• U.S. raised tariffs on Indian imports by up to 50% last month.
• Foreign investors withdrew $11.7 billion from Indian bonds and equities in 2025.
• Reserve Bank of India intervened to slow the rupee’s decline without defending specific levels.
• Labor-intensive industries are expected to face challenges due to U.S. tariffs.
Summary
The Indian Rupee reached a historic low of 88.44 against the U.S. Dollar on September 11, 2025, driven by the impact of increased U.S. tariffs on Indian imports. The Trump administration’s decision to raise tariffs by up to 50% has significantly affected India’s economy, leading to a withdrawal of $11.7 billion by foreign investors from the country’s bond and equity markets this year. The Reserve Bank of India has been intervening to moderate the rupee’s decline, aiming to ease market concerns rather than defend specific levels. Experts predict continued depreciation of the rupee, with labor-intensive industries particularly vulnerable to the tariff impact.
