Rupee Hits Record Low at 88.53 Against Dollar Amid US Tariff and Visa Concerns

Mumbai, September 23, 2025 – The Indian rupee dipped to a record intraday low of 88.53 against the US dollar in early trading on Tuesday, weighed down by increasing US tariffs on Indian imports and the just-increased H-1B visa fee.

The rupee opened softer at the interbank foreign exchange market at 88.41 before declining to its all-time low, 25 paise lower than Monday’s close of 88.28. The currency had already depreciated by 12 paise in the last session. As of 2:04 PM, the Indian Rupee is trading at 88.79.

Pressure from Global and Domestic Headwinds

Forex traders attributed the steep decline to global risk aversion, policy unpredictability, and US trade measures, which have raised volatility in the currency market. The recently introduced USD 100,000 H-1B visa charge is perceived as a possible dampener in remittances and services exports to the US, both of which are vital for India’s external receipts.

Adding to pressure, Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,910 crore on Monday, strengthening dollar demand.

Limited RBI Support

As per market players, the Reserve Bank of India has been releasing periodic dollar liquidity, but not significantly. “IPO inflows of approximately ₹7,500 crore this week are being met by robust dollar buying. The RBI has accommodated higher volatility, and further rupee falls cannot be discounted,” observed Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

Market and Global Cues

The dollar index was slightly weaker at 97.30. Brent crude futures were weaker, down 0.62% at USD 66.16 per barrel. On the equities, the Sensex dropped by 207 points to 81,952, while the Nifty declined by 68 points to 25,134 during morning trade.

Trade Talks with the US

Simultaneously, Commerce and Industry Minister Piyush Goyal is heading a high-powered delegation to the US for trade talks. Talks are geared towards making early headway towards a balanced trade agreement. Goyal will be joined by top officials, such as Special Secretary Rajesh Agrawal, and will also have meetings in New York during the trip.

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