Rupee slumps 25 paise to all-time low of 88.53 against U.S. dollar

The rupee depreciated 25 paise to an all-time intraday low of 88.53 against the U.S. dollar in early trade on Tuesday (September 23, 2025), as headwinds like enhanced U.S. tariffs on Indian goods, as well as the U.S. H-1B Visa fee hike, dented investor sentiments.

Forex traders said that global risk aversion and trade policy uncertainty have also exacerbated the rupee’s depreciation.

At the interbank foreign exchange, the rupee opened at 88.41, then lost further ground and touched an intraday low of 88.53 against the US dollar, registering a decline of 25 paise over its previous close.

On Monday (September 22, 2025), the rupee depreciated by 12 paise to close at 88.28 against the U.S. dollar.

Forex traders said the rupee is dwindling towards record low levels as market participants are analysing the likely repercussions of the U.S.’s new $100,000 H-1B visa levy, which could precipitate a slowdown in remittance growth and curtail service exports to the U.S.

Moreover, risk aversion in domestic markets may also pressure the rupee, they said.

“The RBI has been the only dollar provider with some small inflows on account of IPOs of ₹7,500 crore being launched this week, but getting absorbed by the large buying of dollars.

“The RBI, however, has limited direct currency intervention, thus allowing greater volatility and possible further declines in the rupee, which has made new lows against most currencies,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03%lower at 97.30.

Brent crude, the global oil benchmark, was trading 0.62 per cent lower at USD 66.16 per barrel in futures trade.

The Reserve Bank of India (RBI) is likely to intervene through state-run banks after the rupee hit an all-time low following the U.S. visa fee hike, traders said.

On the interbank order matching system, the currency briefly slipped past 88.50, prompting the central bank to step in, traders said.