Indian Rupee Hits Record Low of 88.67 Amid U.S. Tariff Concerns; Gold Surges Past USD 3,700

New Delhi, September 23, 2025 — The Indian rupee slipped to a fresh all-time low of 88.67 against the U.S. dollar on Tuesday, surpassing its previous record of 88.47 recorded on September 11. Analysts attribute the decline to concerns over U.S. tariff policies, uncertainty surrounding H1B visa rules, and month-end as well as half-year-end outflows by importers.

Currency expert K. N. Dey noted that while there were some foreign institutional investor inflows yesterday, outflows from importers added pressure on the rupee. “Volatility may continue for another two to three days, though the downside appears limited. Levels of 88.47–88.50 could provide good selling opportunities for long-term positions,” he said. One-year forward contracts are quoting at 90.52. The Reserve Bank of India is actively intervening to curb excessive volatility. Dey suggested a slight rupee recovery in October, potentially reaching 87.50–87.60.

Meanwhile, gold continued to hover near historic highs as geopolitical tensions bolstered demand for safe-haven assets. Manav Modi, Analyst at Motilal Oswal Financial Services, said prices surged after the U.S. Federal Reserve cut interest rates last week and signaled further easing. “Gold once again crossed USD 3,700, currently at USD 3,787 per ounce, while silver surged past USD 43 on COMEX,” he said. Investors are closely watching upcoming remarks from Fed Chair Jerome Powell, following a 25 basis-point rate cut and hints of two more cuts this year.

Despite central banks signaling caution due to persistent inflation risks, global currency and commodity markets remain under pressure, reflecting fragile investor sentiment.