Rupee Hits Record Low of 88.75 Against US Dollar Amid Visa Fee Shock

Mumbai, September 23, 2025 — The rupee fell to a new all-time low on Tuesday, closing 47 paise lower at 88.75 against the US currency (provisional), under pressure from continued foreign fund outflow and market concerns over the sharp hike in the US H-1B visa fee.

Intraday Movement

At the interbank foreign exchange, the rupee opened at 88.41 and lost some ground immediately, hitting a lifetime intraday low of 88.82 before closing at 88.75. This was a sharp decline from Monday’s close of 88.28.

Forex investors pointed out that the recently announced USD 100,000 H-1B visa charge is likely to hurt Indian IT service exports and remittance flows, further weakening sentiment. Domestic market risk aversion also weighed on the currency.

Market Context

The greenback, as measured by the dollar index against six major currencies, eased slightly by 0.06 per cent to 97.28. Brent crude futures were up 0.41 per cent at USD 66.84 per barrel.

On equities, the Sensex lost 57.87 points to close at 82,102.10, and the Nifty fell 32.85 points to 25,169.50. Foreign Institutional Investors sold equities worth Rs 2,910.09 crore on Monday, exchange data showed, adding additional pressure on the rupee.

Outlook

Markets expect the rupee to continue being under pressure over the near term as the US visa fee shock keeps weighing on investor sentiment. However, softening global crude oil prices could provide some respite. Market participants are also closely watching cues from US economic data like PMI and current account balance, as well as future comments from US President Donald Trump and Fed Chair Jerome Powell.

At the same time, Commerce and Industry Minister Piyush Goyal is in the US to head the delegation for trade negotiations, where talks are expected to speed up a mutually advantageous trade agreement.

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