New Delhi: The Indian rupee fell 36 paise, closing at an all-time low of 88.47 (provisional) against the US dollar on Thursday (September 11). Rupee has been volatile over the past few weeks as the ongoing tariffs tensions with Washington have deepened uncertainties and added to the domestic currency's vulnerability.

The domestic unit opened at 88.11 at the interbank foreign exchange and fell to 88.47 against the US dollar in intraday trade.

The new rate surpasses the rupee’s previous record low of 88.36 registered on September 5.

According to PTI, forex traders have said that a recovery in the US dollar ahead of inflation data and foreign fund outflows have dented investors' sentiments, while crude oil prices which also gained in the past few sessions, put further pressure on the rupee.

There was a minor recovery on Wednesday after US President Donald Trump indicated signs of an ongoing trade deal with New Delhi, however, it still remains fragile due to dollar demand and global factors.

On Wednesday, the rupee recovered slightly from its record low level and ended with a gain of 4 paise at 88.11 against the US dollar.

On the other hand, the dollar index, which measures the US dollar’s strength against a basket of six global currencies, almost touched 98 as it rose 0.22% to 97.99 on Thursday. Brent oil prices also were up, keeping the dollar bids on the higher side, as per the PTI report.

Reuters reported that the 50% US tariffs, which kicked in last month, are denting investor confidence, making the Indian rupee one of the most vulnerable Asian currencies at present. 

The report also stated that foreign investors have withdrawn a net of $11.7 billion from India's debt and equity markets so far this year.

Last week, the Union government announced a rate cut on goods and services tax (GST) to soften the impact of the US levies.

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