Due to a sharp increase in the cost of the US H-1B visa, which is predicted to have a significant negative impact on Indian IT services exports, the rupee fell 47 paise to reach an all-time low of 88.75 (provisional) against the US dollar on Tuesday.
Forex dealers reported that as market participants examined the potential effects of the additional USD 100,000 H-1B visa charge, which could cause a halt in remittance growth and limit service exports to the US, the rupee declined to record low levels. According to them, the rupee may also be under pressure from risk aversion in local markets.
The rupee started the day at 88.41 on the interbank foreign exchange, lost more ground, and hit an all-time intraday low of 88.82 versus the US dollar before closing the day at 88.75 (provisional), down 47 paise from its previous close.
At 97.28, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.06 percent. According to market statistics, foreign institutional investors sold off stocks on Monday for a total of Rs 2,910.09 crore. In futures trading, Brent crude, the world’s benchmark for oil, was up 0.41 percent at USD 66.84 per barrel.
Headwinds like the increased US tariffs on Indian exports, according to forex traders, affected the market mood. In order to forward discussions and reach an early completion of a mutually beneficial trade agreement, the delegation intends to meet with the US team.
