Indian rupee closes at record low of 88.75 per US dollar

The Indian rupee on Tuesday closed at an all-time provisional low of 88.75 against the United States dollar, amid sustained foreign fund outflows after a steep hike in H-1B visa fees, PTI reported.

The rupee opened at 88.41, fell to an intraday low of 88.82, and ended the day at 88.75.

The rate of 88.75 marked a fall of 47 paise per dollar from its closing rate on Monday, which was 88.28. The previous all-time low was 88.44 on September 11.

Forex traders said that market participants analysed the likely repercussions of the new $100,000 H-1B visa levy, which could lead to lower remittances and hit Indian Information Technology service exports to the US.

The rupee is Asia’s worst-performing currency this year, Bloomberg reported on August 29.

On Friday, US President Donald Trump signed an executive order, asking companies to pay $100,000 for new H-1B visa applicants. Prior to this, companies were paying $215 to register for the H-1B visa lottery, in addition to several filing fees.

H-1B visas allow companies in the US to temporarily employ foreign workers for special occupations.

Over the past few years, Indians have constituted the majority of H-1B visa holders. Indians comprised 72.3% of all H-1B visas issued by the US in the financial year 2022-’23.

The impact was seen on the stock market on Monday, when the sub-index...

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