New Delhi: The Indian rupee slipped to a fresh record low of 88.67 against the U.S. dollar on Tuesday, amid concerns over American tariff policies and uncertainty surrounding H1B visa rules.
The fall breached its previous all-time low of 88.47 recorded on September 11, according to currency expert K. N. Dey. He attributed the weakness to month-end and half-year-end outflows by importers, along with cancellations of some export forward contracts.
“There were some FII inflows yesterday, but outflows from importers have added pressure today. Volatility may continue for another two to three days, though the downside appears limited,” Dey told.
He added that levels of 88.47–88.50 could provide good selling opportunities for long-term positions, with one-year forward contracts quoting at 90.52. The Reserve Bank of India (RBI) is actively intervening in the currency market to curb excessive volatility, he noted. Looking ahead, Dey suggested that the rupee could strengthen slightly in October, potentially moving to 87.50–87.60 over the next two months.
Meanwhile, in global commodities, gold continued to hover near historic highs as geopolitical tensions spurred demand for safe-haven assets. Manav Modi, Analyst of Precious Metal Research at Motilal Oswal Financial Services, said prices surged after the U.S. Federal Reserve cut interest rates last week and signaled more easing ahead.
“Gold once again crossed USD 3,700, with current levels at USD 3,787 per ounce, while silver surged past USD 43 on COMEX,” Modi said. He added that investors are closely tracking upcoming remarks from Fed Chair Jerome Powell and other officials after the central bank trimmed rates by 25 basis points and hinted at two more cuts this year.
However, the Fed also flagged persistent inflation risks, raising uncertainty about the pace of easing in 2026 and 2027.
With the rupee under pressure, gold at record highs, and central banks signaling caution, investor sentiment across global currency and commodity markets remains fragile.
