Rupee Hits Record Low Amid U.S. Tariff and Visa Policy Shocks

On Tuesday, September 23, 2025, the Indian rupee plunged to a new record low as investor sentiment took a hit from fresh U.S. trade and immigration policy shifts.

The Indian Rupee opened at 88.41 per U.S. dollar, slipping further from Monday’s close of 88.31, and quickly fell to an all-time low of 88.46 in early trading. This decline came despite a modest pullback in the U.S. dollar across broader Asian markets.

Why is Indian Rupee Falling?

U.S. Policy Moves Weigh on Market

The steeper tariffs by the US specifically targeting Indian exports, exceeding those imposed on other Asian economies. Additionally, a sharp increase in H-1B visa application fees further rattled markets.

As per market experts, the visa fee hike could undermine India’s vital IT services industry and reduce remittance inflows from the US, a major source of foreign exchange for the country, contributing nearly one-third of total remittances.

Also Read: Gold and Silver Prices Today: Check Rates in Your City on Sep 23, 2025

Fed Outlook Keeps Dollar in Check

Meanwhile, the US dollar edged lower in Asian trade, as markets digested recent comments from Federal Reserve officials. Despite last week’s rate cut and the Fed signaling two more reductions before year-end, policymakers maintained a cautious stance on inflation and economic momentum.

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