Rupee slips as traders weigh H-1B visa fee impact; opens at 88.17/$

The Indian Rupee opened weaker on Monday as traders weighed the implications of US President Donald Trump's new $100,000 H-1B visa fee.

The domestic currency opened 7 paise lower at 88.17 against the dollar on Monday, according to Bloomberg. The Rupee has slipped 3.15 per cent in the current financial year and 3.02 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.

This week, upcoming initial public offerings (IPOs) worth ₹7,500 crore could bring additional flows, even as traders weigh US inflation data, rate cut expectations, and the new $100,000 H-1B visa fee that may impact Indian IT firms, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said.

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 rose to 97.75 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 0.14 per cent at 97.78.

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 rose amid a bearish tone due to persistent supply concerns and weakening demand sentiment, analysts said. Brent crude price was up 0.66 per cent at 67.12 per barrel, while WTI crude prices were higher by 0.64 per cent at 63.08 per barrel, as of 9:23 AM IST.