The Indian rupee weakened to around 89.3 per USD, hitting a fresh record low, as signs emerged that steep US tariffs are starting to weigh on the economy.. A flash survey showed that the country’s economic activity slowed in November, with manufacturing growth easing to its lowest since May, while the services expansion moderated. This comes after a bigger-than-expected record trade deficit in October, as exports to the US, India’s largest trading partner, slumped under the 50% tariffs imposed by President Trump. On the policy front, despite inflation hitting a record low, markets remained divided on a rate cut in December, as core inflation stayed elevated. Meanwhile, the RBI’s frequent interventions helped stabilize the rupee for the past months, while cuts to the goods and services tax in September provided support to domestic demand. Attention now is focused on the upcoming GDP data next week and the possibility of a US-India trade deal.