Rupee Hits Record Low Of 88.75 Against Dollar, Visa Fee Hike & Outflows Add Pressure

Mumbai: The Indian rupee continued to weaken on Tuesday, falling 47 paise to hit a record low of Rs 88.75 against the US dollar in intraday trade. The fall was mainly due to continued foreign fund outflows and concerns over the sharp hike in the US H-1B visa fee, which may impact India’s IT exports.

At the interbank foreign exchange market, the rupee opened at Rs 88.41, touched a day's low of Rs 88.82, and finally settled at Rs 88.75, marking its weakest closing ever.

Visa Fee Hike Dampens Market Mood

Forex traders said the US government’s decision to increase the H-1B visa fee to USD 100,000 has raised fears of a slowdown in remittances and service exports, especially from the Indian IT sector. This has put extra pressure on the rupee, which was already facing global headwinds and weak sentiment.

Adding to the worry, Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 2,910 crore on Monday, worsening the rupee’s performance.

Expert View and Market Outlook

Anuj Choudhary, Currency Analyst at Mirae Asset ShareKhan, said that the rupee may remain under pressure as the visa hike issue continues to worry investors. However, falling global crude oil prices and possible intervention by the RBI might help limit the rupee’s losses.

He also said that traders will keep an eye on upcoming PMI data, the US current account balance, and speeches by President Donald Trump and Fed Chair Jerome Powell.

Trade Talks Underway

Meanwhile, Commerce Minister Piyush Goyal is visiting the US for trade talks, aiming to push for a mutually beneficial agreement. He is joined by ministry officials, including Rajesh Agrawal, to resolve key trade issues.