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The Indian rupee hit a record low on Tuesday, hurt by lingering concerns over the impact of steep U.S. tariffs and a sharp jump in H-1B visa fees, though likely central bank intervention helped limit the losses. The currency slid to 88.7975 per dollar before closing at 88.7550, down 0.5% on the day in its steepest drop in nearly a month. The rupee has fallen more than 3.5% this year, making it one of the region's worst performers. Its latest slide followed a sharp hike in H-1B visa fees that threatens profits in India's IT sector, adding to pressure from 50% U.S. tariffs on Indian goods, the highest in Asia. Economists at HSBC estimate that the 5.4 million Indians in the U.S. cumulatively send back about $33 billion in remittances to the country each year. There are about 80,000 new visa applicants each year, and if they were to not get entry, remittance inflows could fall by about $500 million, they said in a Tuesday note. "The risk is that more restrictions on service exports follow, and the lowering of the 50% tariff takes longer than markets are factoring in." India's benchmark equity indexes, the BSE Sensex and Nifty 50, were little changed on the day but IT stocks declined 0.7%, adding to an 18% fall over the year so far even as the broader stock gauge has risen 6.5%. On Tuesday, the central bank likely stepped in to support the rupee but did not appear inclined to defend a specific level, traders said, adding that its measured approach suggests it may allow a gradual weakening of the currency. "The rupee appears to be reflecting the pressure on India's external sector even as domestic cues, such as recent tax cuts and strong business activity data, offer a positive impulse, said Dilip Parmar," a foreign exchange research analyst at HDFC Securities. The local unit was consistently cited as a currency with a weaker outlook in a September emerging market sentiment survey conducted by HSBC. "Brazil and India, which were highlighted as the top economies in the previous survey, lost prominence after both were targeted with a 50% tariff rate," the survey said. Despite persistent headwinds facing the currency, market expectations for sharp swings remain subdued due to the increased participation of companies in the options market and subdued offshore demand for options that bet on its fall.

A majority of European countries now recognise the State of Palestine, following official declarations in New York on Monday by France, Belgium, Luxembourg, Malta and others, after nearly two years of war in Gaza.Here is an overview of diplomatic recognition of the state, which was unilaterally proclaimed by the Palestinian leadership in exile in 1988.Of the territory claimed by the state, Israel currently occupies the West Bank and the Gaza Strip is largely in ruins.Which countries recognise the State of Palestine ?Answer: Nearly 80 percent of UN members.According to an AFP tally, at least 151 countries out of 193 UN members now recognise the State of Palestine.AFP has not obtained recent confirmation from three African countries.Six European nations - France, Belgium, Luxembourg, Malta, Andorra and Monaco - added their names to the list with statements at the UN on Monday.The day before, the United Kingdom and Canada became the first G7 countries to make such a recognition, with Australia and Portugal also following suit.Russia, alongside all Arab countries, almost all African and Latin American states, and most Asian nations - including India and China - are already on the list.Algeria became the first country to officially recognise a Palestinian state on November 15, 1988, minutes after late Palestine Liberation Organisation leader Yasser Arafat unilaterally proclaimed an independent Palestinian state.Dozens of other countries followed in the ensuing weeks and months, and another wave of recognitions came in late 2010 and early 2011.The Israeli offensive in Gaza, which was sparked by the Palestinian militant group Hamas's unprecedented attack in Israel on October 7, 2023, has now pushed another 19 countries to recognise the state. Under President Donald Trump, Washington has argued this is effectively rewarding Hamas for the attack.Who does not ?Answer: at least 39 countries, including Israel, the United States and their allies.Israeli Prime Minister Benjamin Netanyahu's government completely rejects the idea of a Palestinian state.Among Asia nations, Japan, South Korea and Singapore are among those that do not recognise Palestine.Neither do Cameroon in Africa, Panama in Latin America and most countries in Oceania.Until recently, Europe was the most divided continent on the issue, with only Turkey and former Soviet bloc countries recognising Palestinian statehood until the mid-2010s.Some former members of the Eastern bloc, like Hungary and the Czech Republic, still do not recognise it at a bilateral level.Western and northern Europe were once united in their lack of recognition, with the exception of Sweden, which extended it in 2014.But the war in Gaza has upended things, with Norway, Spain, Ireland and Slovenia following in Sweden's footsteps in 2024, before the additions of recent days.Italy and Germany do not plan on recognising a Palestinian state.What does recognition mean ?Romain Le Boeuf, a professor in international law at the University of Aix-Marseille in southern France, described recognition of Palestinian statehood as "one of the most complicated questions" in international law, "a little like a halfway point" between the political and legal.He told AFP that states were free to choose the timing and form of recognition, with wide variations.According to Le Boeuf, there is no office to register recognitions."The Palestinian Authority in the West Bank puts all they consider to be acts of recognition on its own list, but from a purely subjective point of view. In the same way, other states will say that they have or have not recognised it, but without really having to justify themselves," he said.However, there is one point on which international law is quite clear: "Recognition does not mean that a state has been created, no more than the lack of recognition prevents the state from existing."While recognition carries largely symbolic and political weight, three-quarters of countries say "that Palestine meets all the necessary conditions to be a state", he said."I know for many people this seems only symbolic, but actually in terms of symbolism, it is sort of a game changer," lawyer and Franco-British law professor Philippe Sands told a New York Times podcast in August."Because once you recognise Palestinian statehood... you essentially put Palestine and Israel on level footing in terms of their treatment under international law."