Rupee Crumbles Amid Visa Fee Shock: Hits All-Time Low

The Indian rupee continued its downward spiral, plummeting 48 paise on Tuesday to reach a historic low of 88.76 against the US dollar. This decline followed the market's reaction to President Donald Trump's decision to sharply increase H-1B visa fees, sparking concerns over remittances and equity outflows.

Forex traders are increasingly anxious about reduced remittance growth and a potential decline in service exports to the US. The rupee, which opened at 88.41 and hit an intraday low, is facing multiple pressures including global risk aversion and uncertain trade policies.

According to CR Forex Advisors' MD Amit Pabari, the recent equity outflow of Rs 2,910 crore reflects investor nervousness over global policy changes, echoing a trend that places constant pressure on India's financial markets. Meanwhile, the dollar index rose slightly, and the domestic equity markets saw significant declines.

(With inputs from agencies.)