<h1>Tariff dispute and trade talks fuel record currency close at 88.35 per US dollar, FX volatility to persist</h1> A bilateral tariff dispute between Country A and Country B and ongoing trade negotiations have created currency market vulnerability, causing the domestic currency to hit a record close of 88.35 per US dollar amid strong dollar demand, foreign institutional outflows and crude price movements. Market participants cite anticipated foreign monetary policy moves, widening interest rate differentials, importer dollar demand and elevated FX premiums as drivers. Regulators and traders face elevated FX risk and volatility; quoted market ranges and analyst forecasts signal continued downside bias absent resolution of tariff measures or stabilizing capital flows. Domestic equity inflows provided limited offset to depreciation pressures.