India rupee hits all-time low on US tariff strain; RBI under the lens

The Reserve Bank of India stepped in on Friday to support the rupee, yet letting it breach 88 caught most market participants off guard. "Unless we see some improvement in trade relations between India and the U.S., we cannot expect any stability in the rupee, and we could see test of fresh lows frequently," said VRC Reddy, treasury head at Karur Vysya Bank. The U.S. last week raised tariffs on Indian products by 25%, bringing the country’s total duty burden to 50%.