{"id":33461,"date":"2025-08-30T20:27:16","date_gmt":"2025-08-30T20:27:16","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/33461\/"},"modified":"2025-08-30T20:27:16","modified_gmt":"2025-08-30T20:27:16","slug":"indian-rupee-plunges-to-all-time-low-against-uae-dirham-on-us-tariff-concerns","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/33461\/","title":{"rendered":"Indian Rupee Plunges To All-Time Low Against UAE Dirham On US Tariff Concerns"},"content":{"rendered":"

(MENAFN<\/a>– Khaleej Times) <\/p>\n

The Indian rupee plummeted to record lows on Friday, breaching the 88-per-dollar mark for the first time on concerns that punitive US tariffs could hurt growth and further hit portfolio flows.<\/p>\n

Washington imposed an additional 25 per cent tariff on Indian goods this week, doubling the total duties faced by the South Asian nation to 50%.<\/p>\n

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The rupee ended at 88.1950 (around 24.04 against the UAE dirham) per US dollar, down 0.65 per cent on the day, marking its biggest one-day loss in nearly three months. The currency hit an all-time low of 88.3075 (around 24.06 against the UAE dirham) during the session, likely prompting intervention from the Reserve Bank of India.<\/p>\n

Stay up to date with the latest news. Follow KT on WhatsApp Channels. <\/strong> <\/p>\n

The rupee fell 0.68 per cent in August, largely due to Friday’s decline, extending its losing streak to the fourth month.<\/p>\n

“The US tariffs are likely to prolon India’s balance of payment stress, keep financial flows weak, and widen the trade deficit,” Dhiraj Nim, FX strategist at ANZ Bank said.<\/p>\n

“My view remains bearish on the rupee, with dollar\/rupee likely to rise more despite a broadly weaker dollar.”<\/p>\n

The US tariffs are likely to shave off 60-80 basis points from India’s GDP growth if they stay in place for a year, economists have said, potentially adding pressure on an already slowing economy.<\/p>\n

India’s central bank currently expects the economy to grow by 6.5 per cent in the current financial year that ends on March 31.<\/p>\n

Indian exports to the US account for 2.2 per cent of GDP but a sharp slowdown in labour-intensive industries like textiles and jewellery could lead to job losses and worsen the economic impact, economists have said.<\/p>\n

The tariffs could widen India’s trade deficit at a time when foreign portfolio flows have been weak, worsening the country’s balance of payments.<\/p>\n

Foreign portfolio investors have sold $9.7 billion in Indian debt and equities so far this year. They have pulled more than $1 billion from Indian equities over the two sessions following the announcement of additional US tariffs.<\/p>\n

This week saw Indian equities register their steepest drop since March.<\/p>\n

The rupee’s decline this week – including a new all-time low against the yuan on Friday – could partially cushion the impact of higher US tariffs.<\/p>\n

The rupee has struggled versus the dollar despite a broadly weaker dollar.<\/p>\n

“This is not a bad thing though because the trade weighted real effective exchange rate is now at the lowest level in 2 years and should help boost competitiveness,” analysts at JP Morgan said in a note.<\/p>\n

<\/p>\n

MENAFN30082025000049011007ID1109995777<\/p>\n

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