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The Indian rupee hit a fresh record low on Tuesday, September 23, 2025, slipping to Rs. 88.53 per US dollar in early trade. Pressure from steep US tariffs on Indian goods, the newly announced $100,000 H-1B visa fee, and weak foreign equity inflows combined to dampen investor confidence, sending the currency to its lowest level ever.
At the interbank foreign exchange, the rupee opened at 88.41, quickly losing ground to touch 88.53, down 25 paise from Monday’s close of 88.28. The weakness extends Monday’s 12-paise decline and underscores persistent volatility.
Forex traders attributed the decline to global markets being risk-off, uncertainty over trade policy, and expectations that remittances from Indian professionals in the US will slow due to the higher cost of visas.
The recent US tariff increases have added pressure on Indian exports while global demand is still weak. The increase in H-1B visa fees will hit Indian IT professionals, as they account for more than 70% of visas issued to workers in 2024.
Analysts highlighted that while the Reserve Bank of India (RBI) has been supplying dollars through state-run banks, intervention has been modest.
“The RBI has limited capacity for direct currency intervention, which is why the rupee continues to touch new lows against multiple currencies,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
Some inflows from domestic IPOs, estimated at around Rs. 7,500 crore, provided temporary relief but were quickly absorbed by strong dollar demand.
On the international front, the US dollar index fell by 0.03% to 97.30, which offered little support to the rupee. Brent crude slipped 0.62% to $66.16 per barrel, offering a bit of relief on the import bill, but not enough to ease concerns overall.
The currency weakness spilled over into equities. The Sensex fell 265.34 points (0.32%) to 81,915.17, while the Nifty declined 80.12 points (0.30%) to 25,119.25. Foreign Institutional Investors (FIIs) continued their selling streak, offloading Rs. 2,910 crore worth of shares on Monday.
The sustained depreciation has sharpened expectations that the RBI could consider a 25-basis-point rate cut in its upcoming policy meeting. Economists at the SBI observed that, with inflation around 4%, an easing of rates may be the most effective policy to support growth and stabilize markets.
Commerce Minister Piyush Goyal is leading a delegation in the US for trade negotiations. The discussions are likely to center around tariff escalations and visa regulations, and investors will be watching closely for any signs of progress to relieve pressure on the rupee.
