The Indian rupee weakened past 87.7 per USD on Wednesday, remaining close to the record low tested last session after the US doubled its tariff rate against India. US President Trump imposed an additional tariff of 25% on imports of Indian goods due to the country's continued buying and re-exporting of Russian oil and energy goods. This was after PM Modi pushed back and stated that Indian business buy the most favorable inputs in an uncertain economic backdrop. The tariffs double the rate of the 25% imposed last week in the US's latest round of reciprocal tariffs, hurting the outlook of foreign exchange inflows into the world's fastest growing major economy. On the monetary policy front, consumer inflation feel to a six-year low of 2.1%, well below market expectations, to test the lower bound of the RBI's inflation tolerance band of 2%. The central bank held rates unchanged in its August meeting, as expected, but a majority of the market has positioned for another rate cut this year.