The rupee depreciated 45 paise to close at a fresh alltime low of 88.73 against the US dollar on Tuesday, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports. Forex traders said the rupee dwindled towards record low levels as market participants analysed the likely repercussions of the new USD 100,000 H-1B visa levy, which could precipitate a slowdown in remittance growth and curtail service exports to the US. Moreover, risk aversion in domestic markets may also pressurise the rupee, they said. “We expect the rupee to remain weak as the US visa fee hike issue may continue to dampen domestic market sentiments and may result in foreign outflows. However, overall weakness in global crude oil prices may support the domestic currency,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan. Choudhary further noted that any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels
