All-Time Low of 88.49 Against US Dollar: The Indian rupee (INR) slipped to an all-time low of 88.4950 against the US dollar in early trade on September 23, 2025, amid weak performance of Asian currencies and a firm US dollar. The domestic currency opened at 88.4137, down 10 paise from the previous close of 88.3163. Investors and currency traders are closely watching these movements as persistent headwinds continue to exert pressure on the rupee.
With foreign inflows already weak this year, the rupee faces a double challenge. Despite the current dip, analysts expect the rupee to appreciate gradually if the dollar index weakens, with support levels predicted around 87.90–88.00, according to Amit Pabari, Managing Director at CR Forex Advisors.
Weak Asian Currencies Put Pressure on INR
Performance of Major Asian Currencies
- South Korean Won: -0.22%
- Thai Baht: -0.16%
- Indonesia Rupiah: -0.08%
- Singapore Dollar, Japanese Yen, Hong Kong Dollar: -0.05% each
A broad sell-off in Asian currencies, combined with a strong US dollar, created a challenging environment for the Indian rupee. Traders are keeping an eye on regional economic indicators, central bank policies, and global trade developments, all of which influence currency movements.
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External Factors Affecting the Rupee
US Tariffs on Indian Goods
The US has increased tariffs on certain Indian exports, impacting trade flows and investor sentiment. Higher tariffs reduce export competitiveness, which can result in weaker foreign exchange inflows.
H1B Visa Fee Hike
The hike in H1B visa fees to $100,000 has sparked concerns about potential outflows from India’s IT sector. These higher fees may discourage companies from hiring skilled Indian workers abroad, indirectly affecting remittances and stock market investments linked to IT firms.
Market Expectations and Forecast
Despite early weakness, currency analysts predict some stabilization if the dollar index softens. Amit Pabari from CR Forex Advisors noted:
“With the dollar index on a weaker footing, the rupee is expected to appreciate from current levels, with support placed around 87.90–88.00.”
Investors are advised to monitor global trade policies, US economic updates, and domestic foreign exchange inflows to better understand future movements of the rupee.
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FAQs About Rupee’s All-Time Low
1. Why did the Indian rupee hit an all-time low against the US dollar?
The rupee’s decline is due to weak Asian currencies, a strong US dollar, higher US tariffs on Indian exports, and increased H1B visa fees. These factors reduce remittances and foreign inflows, putting pressure on the currency.
2. How do Asian currencies affect the Indian rupee?
The rupee often moves in correlation with other Asian currencies. When regional currencies weaken, foreign investors may withdraw funds or prefer stronger currencies like the US dollar, adding pressure on the INR.