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INR USD | Rupee slips to record low vs Dollar as US tariffs, H-1B Visa policy weigh
The Reserve Bank of India likely stepped in to support the rupee versus the dollar but did not appear inclined to defend a specific level.
The Indian National Rupee slipped to a record low against the US Dollar on lingering concerns over 50% US tariffs and $100,000 H-1B visa fee. A likely RBI intervention helped limit losses.
On Tuesday, 23 September 2025, the rupee weakened to an intraday low of 88.795 per dollar before ending 0.5% lower at 88.755.
The Reserve Bank of India likely stepped in to support but did not appear inclined to defend a specific level, traders said, adding that RBI's measured approach suggests it may allow a gradual weakening of the currency.
The currency has fallen more than 3.5% this year against the dollar.
“The rupee appears to be reflecting the pressure on India's external sector even as domestic cues, such as GST tax cuts and strong business activity data, offer a positive impulse,” Dilip Parmar, a forex research analyst at HDFC Securities, told Reuters.
The rupee's latest slide follows a sharp hike in H-1B visa fees that threatens the business of India's outsourcing industry in its biggest market — the US. That's on top of the export pressures stemming from 50% tariffs.
About 5.4 million Indians in the US cumulatively send back about $33 billion in remittances to the country each year, according to HSBC. There are about 80,000 new visa applicants each year. If they were to not get entry, remittance inflows could fall by about $500 million/year.
“The risk is that more restrictions on services exports follow, and the lowering of the 50% tariff takes longer than markets are factoring in.”
