On Wednesday, September 24, 2025, the Indian rupee managed a small gain of 2 paise, closing provisionally at 88.71 against the U.S. dollar. This slight upward movement came after the currency had reached an all-time low, primarily due to the ongoing impact of elevated U.S. tariffs and challenges related to H-1B visa policies.
Foreign exchange traders noted that the rupee continues to hover near its record low. This persistent weakness is attributed to continuous outflows of funds by foreign investors, a general risk-averse sentiment among global investors, and prevailing uncertainties in trade policy.
The depreciation of the rupee has been further intensified by the imposition of increased U.S. tariffs on various Indian products, coupled with broader global trade policy ambiguities.
In the interbank foreign exchange market, the rupee commenced trading at 88.80 against the U.S. dollar. By the end of the day, it provisionally closed at 88.71, marking a recovery of 2 paise from its prior close. Just the day before, on Tuesday, September 23, 2025, the rupee had seen a significant drop of 45 paise, reaching a new record closing low of 88.73. During intraday trading, it even touched an all-time low of 88.82 against the U.S. dollar.
Traders highlighted that a key factor contributing to the rupee’s struggle near historical lows against the U.S. dollar is the recent “H-1B visa hike shock” announced by the United States.
Anuj Choudhary, a research analyst specializing in currency and commodities at Mirae Asset ShareKhan, anticipates continued weakness for the rupee due to the U.S. visa fee increase. He added that the domestic market’s subdued performance and continued Foreign Institutional Investor (FII) outflows could intensify pressure on the currency. Conversely, a potential softening in crude oil prices or any intervention by the Reserve Bank of India (RBI) could offer some support, preventing a steeper decline. Traders are also advised to monitor upcoming U.S. new home sales data for further market direction. Choudhary projects the USD-INR spot price to trade within a range of 88.40 to 89.25.
Concurrently, the dollar index, a crucial measure of the U.S. dollar’s strength against a group of six major global currencies, was observed trading 0.36% higher, reaching 97.61.
In the commodities market, Brent crude, recognized as the international benchmark for oil prices, saw a 0.61% increase, trading at $68.04 per barrel in futures.
Domestically, the equity market experienced a downturn, with the Sensex falling by 386.47 points to close at 81,715.63. The Nifty also registered a decline of 112.60 points, settling at 25,056.90.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers on Tuesday, divesting equities valued at ₹3,551.19 crore.
In related news, Commerce and Industry Minister Piyush Goyal is currently in the United States engaging in crucial trade discussions. He is joined by key Ministry officials, including Special Secretary and India’s Chief Negotiator, Rajesh Agrawal.
Minister Goyal has already held discussions with his U.S. counterpart.
This high-stakes visit follows recent day-long discussions held in New Delhi, where U.S. Chief Negotiator Brendan Lynch met with Mr. Agrawal to deliberate on a proposed bilateral trade agreement.