Daijiworld Media Network – Mumbai

Mumbai, Sep 23: The Indian rupee tumbled 47 paise to close at a record low of 88.75 (provisional) against the US dollar on Tuesday, weighed down by persistent foreign fund outflows and fears over the steep hike in the US H-1B visa fee, which could hit India’s IT exports.

At the interbank foreign exchange market, the rupee opened at 88.41, slid to an all-time intraday low of 88.82, and finally settled at 88.75, down 47 paise from Monday’s close of 88.28. On Monday, the currency had already weakened by 12 paise.

Forex traders said the sudden $100,000 H-1B visa levy is expected to slow remittance growth and curb Indian service exports to the US, triggering risk aversion and sustained foreign outflows.

“We expect the rupee to remain weak as the US visa fee hike may continue to dampen domestic market sentiment and spark foreign outflows. However, falling global crude oil prices could offer some support,” said Anuj Choudhary, Research Analyst – Currency and Commodities, Mirae Asset ShareKhan.

Choudhary added that Reserve Bank of India (RBI) intervention might stabilise the rupee at lower levels. Traders are also watching upcoming US PMI and current account balance data, along with speeches by US President Donald Trump and Federal Reserve Chair Jerome Powell, for further cues.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped 0.06 per cent to 97.28. Brent crude, the global oil benchmark, was trading 0.41 per cent higher at USD 66.84 per barrel in futures trade.