Rupee at all-time low: Rupee weakened further on Tuesday, hitting an all-time intraday low of Rs 88.53 against the US dollar, as global uncertainties and policy shocks rattled investor confidence. The domestic currency opened at Rs 88.41 and quickly ceded ground, following a 12-paise loss on Monday.
H-1B visa hike and trade tensions weigh
Traders cited the USD 100,000 H-1B visa levy as a key factor affecting market sentiment. While the fee applies only to new applications from 2026, investors are factoring in potential slowdowns in remittances and service exports. Additional headwinds came from enhanced US tariffs on Indian goods, intensifying concerns over India-US trade relations.
Foreign outflows add pressure
On Monday, foreign institutional investors (FIIs) sold equities worth Rs 2,910 crore, reflecting cautious positioning ahead of upcoming policy clarifications. Analysts said these outflows, combined with global risk aversion, contributed to the rupee’s sharp decline.
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Domestic market impact
Indian equity benchmarks opened on a subdued note, with the BSE Sensex down 207.78 points (0.25 per cent) at 81,952.19 and Nifty 50 sliding 68.40 points (0.27 per cent) to 25,133.95. Forex traders expect volatility to persist until trade negotiations and H-1B clarifications provide clarity.
Eyes on trade talks
Commerce and Industry Minister Piyush Goyal is leading an official delegation to the US for discussions aimed at a mutually beneficial trade agreement. Any positive outcome is expected to stabilize the rupee and potentially lift investor sentiment.
