The rupee depreciated 7 paise from its all-time closing low to 88.80 against US dollar in early trade on Wednesday dragged down by tariff and H-1B visa issues amid persistent foreign fund outflows.

The Indian rupee sank to an all-time low of 88.64 against the United States dollar in early trade on Tuesday amid external headwinds such as tariffs imposed by Washington and increase in the H-1B visa fee. The depreciation of the rupee was also driven by uncertainty around the trade policy and risk aversion among domestic investors, PTI reported.

The rupee depreciated by 25 paise to hit a record intraday low of 88.53 against the US dollar in early trade on Tuesday. According to forex traders, global risk aversion and uncertainty surrounding trade policies further added to the rupee’s decline.

The rupee hit an all-time low of 88.80 against the dollar on Tuesday before ending the session at 88.75. Despite the clarification that the H-1B visa fee is a one-time charge only for new applicants, it continued to weigh on the local currency.

The Indian rupee fell to an all-time low on Tuesday, sliding to 88.62 against the U.S. dollar, surpassing the previous record of 88.4550

The USD/INR exchange rate soared to 88.7, up by almost 6% from its lowest level in April this year. What next for the Indian rupee?