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9/4/25, 7:29 AM Indian rupee hits record low triggering remittance surge from UAE, GCC expats | Khaleej Times

On Friday, the rupee slipped past the crucial 88 mark, hitting 88.3075 per dollar in its steepest slide ever. The move followed
rupee slipped past the crucial 88 mark
Washington’s decision to double tariffs on Indian exports, a measure expected to widen India’s trade deficit and erode investor
sentiment.

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Analysts said the breach of the 88 level, long seen as a line in the sand, could prompt intervention by the Reserve Bank of India
(RBI). Yet most expect the central bank to allow gradual depreciation in the interest of maintaining export competitiveness.

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“Until the uncertainties around US tariffs settle down, it will continue being a rupee-negative event,” said Dipti Chitale, CEO at
Mecklai Financial Services. “We believe the RBI will prioritise stability but won’t resist a weaker rupee if it aids exporters.”

India’s macro picture remains complex. The economy grew 7.8 per cent year-on-year in the April–June quarter, beating
second-quarter
forecasts of 6.7 per cent and up from 7.4 per cent in the previous quarter. However, economists caution that second-quarter
growth could slow as tariff impacts ripple through supply chains. “For now, our full-year GDP forecast for FY26 stands at 6.3 per
growth could slow
cent, but the bias is clearly downward unless trade tensions ease,” said Sakshi Gupta, principal economist at HDFC Bank.

The rupee’s decline has been exacerbated by accelerating foreign outflows from equities, with investors wary of earnings risks
in export-heavy sectors. “Everything now depends on how the RBI manages the markets,” said VRC Reddy, treasury head at

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