Rupee Vs Dollar: Rupee Hits Record Low Amid Visa Shock, H-1B Fee Hike Sends Currency Tumbling

New Delhi: The Indian rupee continued its losing streak on Tuesday, plunging by 48 paise to close at a new all-time low of Rs 88.76 per US dollar. The drop occurred in the afternoon trade as the market reacted strongly to the US government's decision to sharply hike the H-1B visa fees. The rupee had already weakened by 12 paise on Monday, ending that day at 88.28.

H-1B Visa Fee Hike Sparks Concerns

The sudden move by US President Donald Trump to increase the H-1B visa fee to USD 100,000 sent shockwaves through the Indian economy. The IT industry, which is heavily reliant on sending skilled professionals to the US on H-1B visas, is expected to be directly impacted. Forex traders said this has raised fears of a slowdown in remittances and a decline in service exports, both of which are crucial for maintaining the rupee's strength.

Investor Sentiment Takes a Hit

As investors assessed the broader implications of this policy change, the equity markets also reflected nervousness. On Monday, foreign institutional investors (FIIs) pulled out Rs 2,910 crore from Indian equities. Experts say such outflows highlight how quickly global policy shifts can rattle financial markets in emerging economies like India. Amit Pabari, Managing Director of CR Forex Advisors, remarked that global uncertainty and risk aversion are likely to keep the rupee under pressure in the short term.

Global Factors Add to the Slide

Adding to the rupee’s troubles, the dollar index — which measures the US dollar against a basket of currencies — was trading higher at 97.38, making the greenback stronger. However, a slight fall in Brent crude oil prices to USD 66.23 per barrel offered minor relief to India’s import bill.

On the domestic front, the Sensex fell 271.99 points to 81,887.98, and the Nifty dropped 80.65 points to 25,121.70, reflecting the broader cautious mood in the market.