Mumbai: The rupee depreciated 12 paise to close at 88.28 against the dollar on Monday, as investors weighed Trump's H-1B visa fee hike impact on Indian remittances amid heightened risk-averse sentiment.
Forex traders said the recent hike in H-1B visa fees could contribute to equity outflows from the Indian IT sector in the near term, and could also exert pressure on the Indian rupee.
At the interbank foreign exchange, the rupee opened at 88.20, then touched an intra-day low of 88.34 and a high of 88.12 against the greenback. The domestic unit finally settled at 88.28, lower by 12 paise over its previous close.
On Friday, the rupee appreciated 4 paise to close at 88.16 against the US dollar.
"The rupee is dwindling towards a record low as market participants scrutinise the likely repercussions of the US's new $100,000 H-1B visa levy. This development could precipitate a slowdown in remittance growth and curtail service exports to the US," Dilip Parmar-research analyst, HDFC Securities, said.
Source Name : Economic Times