Rupee extends losses in late session after H-1B shock; ends at 88.31/$

The Indian Rupee weakened in the latter part of the session, in tandem with equities, after US President Donald Trump announced a new $100,000 H-1B visa fee.

 

The domestic currency closed 21 paise lower at 88.31 against the dollar on Monday, according to Bloomberg. The Rupee has slipped 3.25 per cent in the current financial year and 3.15 per cent in 2025 so far. 

 

The currency pair has traded in a range since hitting 88.46 about two weeks ago, analysts noted as inflows kept it between 87.71 and 88.30 last week.

 

Donald Trump over the weekend signed an executive order raising the H-1B application fee to $100,000, from the earlier $2,000–5,000. The White House clarified it will be a one-time payment, effective September 21, potentially pressuring margins of Indian outsourcers.

 

Motilal Oswal noted that around 20 per cent of employees at the top five IT services firms are currently based on-site. T companies are likely to see a knee-jerk reaction on Monday, analysts said, adding the falling dependence on the H-1B visa in the last few years could be a silver lining. 

 

The dollar index pared gains after stronger US jobless claims and a less dovish Fed outlook signalled two cuts in 2025 and one in 2026.  The measure of the greenback against a basket of six major currencies was up 0.15 per cent at 97.50.

 

The new Goods and Services Tax (GST) rates come into effect today. Prime Minister Narendra Modi on Sunday said that the next day's dawn would bring with it a "savings festival", and exhorted citizens to embrace "swadeshi".  Also, the Indian delegation led by Commerce Minister Piyush Goyal will visit the US today, in a bid to calm trade tensions between the countries. 

 

In commodities, oil prices fell amid a bearish tone due to persistent supply concerns and weakening demand sentiment, analysts said. Brent crude price was down 0.14 per cent at 66.59 per barrel, while WTI crude prices were lower by 0.05 per cent at 62.65 per barrel, as of 3:40 PM IST.