Currency Buzz: Rupee crashes to new record low of 88.80/$; Weak global cues weigh

The Indian rupee extended slide to hit new record lows in opening trades on Wednesday. INR commenced at Rs 88.80 per dollar and recovered to a high of 88.71 so far during the day tracking weak global cues. U.S. President Donald Trump blamed China and India during his UN General Assembly address, calling the two nations the primary funders of the Ukraine war. Asian markets were also broadly lower this morning after Federal Reserve Chair Jerome Powell gave little indication about the future path of interest rates. Yesterday, rupee depreciated 47 paise to hit an all-time low of 88.75 against the US dollar on Tuesday, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports. The INR tumbled towards record low levels as market participants examined the likely repercussions of the new USD 100,000 H-1B visa levy, which could precipitate a slowdown in remittance growth and curtail service exports to the US. Indian shares cut early losses to end on a flat note on Tuesday. The benchmark BSE Sensex fluctuated before ending the session down 57.87 points, or 0.07 percent, at 82,102.10. The broader NSE Nifty index slid 32.85 points, or 0.13 percent, to 25,169.50. Meanwhile, the Organization for Economic Cooperation and Development (OECD) has raised India's GDP growth forecast for 2025 to 6.7 percent from 6.3 percent predicted earlier, citing strong domestic demand and robust Goods and Services Tax (GST) reforms.

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