Rupee slips to record low of 88.36 vs USD; likely RBI intervention caps losses

The Indian rupee plummeted to a record low of 88.36 against the U.S. dollar due to concerns over potential U.S. tariffs on India. The Reserve Bank of India likely intervened to curb further losses as foreign portfolio investors continued to withdraw from Indian equities. MUFG forecasts the rupee could weaken further to 89 by early 2026 if tariffs persist.