<h1>Rupee hits record low as foreign portfolio outflows prompt RBI intervention amid FEMA/RBI rules and US tariff shocks</h1> The rupee hit a record low against the dollar amid sustained foreign portfolio outflows and global trade uncertainty, prompting continued Reserve Bank of India intervention in the FX market and anticipation of an impending Monetary Policy Committee decision; domestic volatility was tempered by falling crude prices and a softer dollar. The report highlights legal and policy drivers: ongoing foreign investment regulation under FEMA/RBI, cross-border trade tensions from recent US administration tariffs-including a prior 50% levy on certain exports and a new 100% tariff on branded/patented drugs effective Oct 1 with an exception for firms establishing US manufacturing-raising compliance and commercial risk for exporters.