On September 23, 2025, the Indian rupee fell to a record low against the US dollar, touching an intraday low of 88.795 before closing 0.5% weaker at 88.755. The decline was driven by concerns over the recently imposed 50% US tariffs and a steep $100,000 H-1B visa fee. Traders believe the Reserve Bank of India likely intervened to curb losses but is allowing a gradual depreciation. The rupee has declined over 3.5% against the dollar in 2025 so far.
According to HDFC Securities’ Dilip Parmar, the rupee is under pressure from external factors despite domestic positives like GST cuts and strong business activity. The visa fee hike poses a major threat to India’s outsourcing sector, which relies heavily on the US market. With around 80,000 new visa applicants annually, remittances from Indians in the US—currently totaling $33 billion—could decline by $500 million per year. There are also fears that further restrictions on services exports may follow, prolonging the impact of US trade barriers.