New Delhi, Aug. 29 -- A one-two punch from hefty Trump tariffs and a sustained exodus of foreign capital threatens to push the Indian rupee to a new record low, potentially providing relief for struggling exporters but also making imported goods more expensive.

Experts anticipate the currency could slide past 88 to the dollar, while the Reserve Bank of India (RBI) limits its intervention to curbing excessive volatility rather than defending any specific currency level. The rupee gained five paise against the dollar to close at 87.63 on Thursday, with market participants pointing to likely RBI intervention through some large banks.

"The fact is, that there is going to be an immediate term impact on the economy, and therefore, on the curr...