Indian rupee slides to all-time low, US visa fee hike compounds pressure

By Nimesh Vora

MUMBAI (GWN) – The Indian rupee dropped to an all-time low on Tuesday, with pressure intensifying after the U.S. raised visa charges, worsening an already weak outlook for the currency.

The rupee declined to a lifetime low of 88.62 to the U.S. greenback, surpassing the prior report of 88.4550 hit about two weeks in the past.

The currency’s decline adopted a important increase in H-1B visa charges, which might slow the deployment of Indian employees to U.S. shoppers and probably hit the profitability of India’s IT sector. That, in flip, could weigh on equity flows, with overseas buyers re-evaluating their stakes in IT corporations.

Additionally, decrease deployment of employees to the U.S. might weigh on remittances, hurting greenback inflows into India.

The timing of the visa fee hike compounds current exterior pressures, with 50% U.S. tariffs on Indian items – the very best among Asian friends – already anticipated to dent exports.

“For the rupee, the pressures have increased in terms of tariffs kicking in at 50% and the recent visa news is incrementally negative for equity flows, especially into the IT sector,” Dhiraj Nim, FX strategist at ANZ Bank, said.

The Reserve Bank of India has room to let the rupee weaken at a measured tempo, he said. With inflation anticipated at around 4–4.5% in fiscal 12 months 2026-27, a modest decline can be manageable, he added.

There are indications that the RBI is following this method. The central bank has intervened in the market to help to the rupee without defending any particular degree.

Interventions are calibrated to guarantee that the currency’s depreciation stays orderly, permitting the rupee to regulate without triggering market disruption, bankers said.

On Tuesday, the central bank doubtless offered {dollars} via state-run banks close to the 88.50 degree to help the rupee before permitting it to slide additional.

The rupee has lagged its Asian friends year-to-date, failing to benefit from the greenback index’s current decline. Heavy U.S. tariffs on Indian items have dampened export prospects and curtailed overseas capital inflows, weighing on the currency.

Foreign buyers have taken out more than $15 billion from Indian equities in 2025.

(Reporting by Nimesh Vora; further reporting by Jaspreet Karla; Editing by Janane Venkatraman andf Sonia Cheema)