<h1>Rupee's record intraday fall spotlights FEMA forex management, RBI intervention expectations amid foreign institutional outflows and tariff rumors</h1> The report describes sharp intraday volatility in the rupee, which hit an intra-day record low before closing slightly firmer, driven by sustained foreign institutional outflows and market panic over a rumored imposition of additional US tariffs on Indian IT exports. The movement prompted expectations of Reserve Bank of India intervention under its forex management powers and highlighted balance-of-payments and foreign exchange reserve implications under FEMA. The episode underscores regulatory exposure to sudden geopolitical or trade-policy shocks, potential scrutiny of capital flow management measures, and the need for coordinated monetary and trade-policy responses to stabilize markets.