The Indian rupee depreciated by 47 paise, reaching an all-time low of 88.75 (provisional) against the US dollar on Tuesday. This decline was largely attributed to a sustained outflow of foreign investment following a significant increase in the US H-1B visa fee, which is anticipated to negatively impact Indian IT services exports.
Forex traders reported that the rupee’s depreciation towards record low levels was influenced by market participants assessing the potential ramifications of the new $100,000 H-1B visa charge, which could slow remittance growth and restrict service exports to the US. Additionally, domestic market risk aversion is also exerting pressure on the rupee’s valuation.
During the trading session, the rupee opened at 88.41, eventually sliding to an intraday low of 88.82 against the US dollar, before settling at 88.75 (provisional), marking a decline of 47 paise from the previous close. On Monday, the rupee had depreciated by 12 paise, closing at 88.28 against the dollar.
Anuj Choudhary, a Research Analyst at Mirae Asset ShareKhan, indicated that the rupee is likely to remain weak as the issues surrounding the US visa fee hike may continue to dampen investor sentiment and lead to further foreign outflows. However, he noted that a decline in global crude oil prices could provide some support to the domestic currency. Choudhary emphasized that any intervention from the Reserve Bank of India (RBI) might help stabilize the rupee at lower levels.
Traders are expected to monitor data releases on the Purchasing Managers’ Index (PMI) and the current account balance from the US. Additionally, market sentiment may be influenced by speeches from US President Donald Trump and Federal Reserve Chair Jerome Powell. The USD-INR spot price is anticipated to trade within a range of 88.45 to 89.20.
Meanwhile, the dollar index, which reflects the dollar’s strength against a basket of six currencies, was down 0.06 percent at 97.28. Brent crude, the global oil benchmark, was trading 0.41 percent higher at $66.84 per barrel in futures markets.
In the domestic equity market, the Sensex declined by 57.87 points to close at 82,102.10, while the Nifty fell by 32.85 points to settle at 25,169.50. Foreign Institutional Investors sold equities worth ₹2,910.09 crore on Monday, as per the exchange data.
Forex traders also noted that heightened US tariffs on Indian goods were impacting investor sentiment adversely. Commerce and Industry Minister Piyush Goyal is currently leading an official delegation to the US for trade discussions, aiming for an early conclusion of a mutually beneficial trade agreement. The minister’s itinerary includes meetings in New York along with special secretary Rajesh Agrawal and other officials.
Published on September 23, 2025.
