What is the current status of the Indian rupee against the US dollar?

The Indian rupee has hit an all-time low of ₹88.31 against the US dollar.

How have the Indian stock markets performed in the recent past?

The Indian stock markets, represented by the Sensex and Nifty indices, have extended their losing streak for the third consecutive session, falling sharply amid the currency crisis and escalating trade tensions.

What is the impact of the India-US trade tensions on the Indian economy?

The persistent trade tensions between India and the US have raised concerns over the future competitiveness of India's exports and the widening fiscal deficit, weighing heavily on investor sentiment.

Home / Business and Economy / Rupee Hits Record Low as India-US Trade Tensions Intensify

Rupee Hits Record Low as India-US Trade Tensions Intensify

29 Aug

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Summary

Rupee plummets to all-time low of ₹88.31 against US dollar
Sensex and Nifty fall sharply amid escalating trade tensions
Foreign investors continue selling spree, record ₹38,590 crore outflows

Rupee Hits Record Low as India-US Trade Tensions Intensify

On August 29, 2025, Indian markets struggled as the rupee plummeted to an all-time low, breaching the psychological ₹88 mark against the US dollar. The benchmark Sensex and Nifty indices fell sharply, with the Sensex losing 270.92 points or 0.34% to close at 79,809.65, and the Nifty 50 declining 74.05 points or 0.30% to settle at 24,426.85.

The market turmoil was driven by escalating trade tensions between India and the United States, with the US implementing new tariffs on Indian products. This development has raised concerns over a widening fiscal deficit and the future competitiveness of India's exports. Investor sentiment remained cautious as markets attempted to digest the full impact of the US tariffs.

The currency crisis deepened, with the rupee hitting a record low of ₹88.20 and expected to trade within a range of ₹87.65-₹88.45. Foreign institutional investors (FIIs) continued their selling spree, recording net outflows of ₹38,590.26 crore in August so far.

Technical analysts remained bearish on the market outlook, with the Nifty slipping below key short-term moving averages and momentum indicators turning negative. Analysts expect volatility to persist in the near term, with crucial support levels being watched closely at 24,250-24,350 for the Nifty.

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