MUMBAI: The rupee bucked the trend among Asian peers on Friday, slipping to a record low even as most emerging market currencies strengthened against the dollar. It closed at 88.27 after touching an intra-day low of 88.36, weaker than Thursday’s close of 88.15.The fall came amid concerns over US tariffs, while intervention by Reserve Bank of India through state-run banks helped limit further losses. The currency ended a volatile week largely below the 88-mark, pressured by persistent foreign portfolio outflows and significant trade-related uncertainties.Washington’s 50% tariff on key Indian exports from Aug 27, linked to purchases of discounted Russian oil, has added to the pressure. Foreign investors have withdrawn over $1.4 billion from Indian equities so far in Sept, taking this year’s outflows to more than $16 billion.Dealers said that while GST reforms had improved sentiment in the capital market, it was too early to predict the outcome on GDP growth and ability to attract foreign investors. While government officials have indicated that a trade deal with the US was likely this year, US President Donald Trump continued to berate India on tariffs.In contrast, other Asian currencies advanced on expectations of a Federal Reserve rate cut this month, led by gains in the Korean won. The dollar index eased 0.22% to 98.01 ahead of US non-farm payrolls data due later in the day.
