Rupee slumps 47ps to all-time low of 88.75/$
Expect the domestic unit to remain weak amid US visa hike issue which may lead to foreign fund outflows
image for illustrative purpose
Mumbai: The Rupee depreciated 47paise to hit an all-time low of 88.75 against the US dollar, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports. Forex traders said the rupee dwindled towards record low levels as market participants analysed the likely repercussions of the new $100,000 H-1B visa levy, which could precipitate a slowdown in remittance growth and curtail service exports to the US. Moreover, risk aversion in domestic markets may also pressurise the rupee, they said.
At the interbank foreign exchange, the rupee opened at 88.41, then lost further ground and touched an all-time intraday low of 88.82 against the US dollar, and finally settled for the day at 88.75, registering a decline of 47paise over its previous close. On Monday, the rupee depreciated by 12 paise to close at 88.28 against the US dollar. “We expect the rupee to remain weak as the US visa fee hike issue may continue to dampen domestic market sentiments and may result in foreign outflows. However, overall weakness in global crude oil prices may support the domestic currency,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.
