Rupee falls 15 paise to close at ₹88.31 against US dollar

The rupee depreciated 15 paise to close at ₹88.31 (provisional) against the US 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 ₹88.31 (provisional), lower by 15 paise over its previous close.

On Friday, the rupee appreciated four paise to close at ₹88.16 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12% to ₹97.52.

Brent crude, the global oil benchmark, was trading 0.21% lower at USD 66.54 per barrel in futures trade.

On the domestic equity market front, Sensex tanked 466.26 points to settle at 82,159.97, while Nifty dropped 124.70 points to 25,202.35.

Foreign institutional investors bought equities worth ₹390.74 crore on a net basis on Friday, according to exchange data.

India's forex reserves jumped USD 4.698 billion to USD 702.966 billion for the week ended September 12, the Reserve Bank of India (RBI) said on Friday.

In the previous reporting week, the overall reserves had increased USD 4.038 billion to USD 698.268 billion.

Meanwhile, Commerce and Industry Minister Piyush Goyal is leading an official delegation to the US for trade talks.

The delegation plans to hold talks with the US team to take forward discussions with a view to achieving an early conclusion of a mutually beneficial trade agreement.

The minister will visit New York, accompanied by the special secretary in the ministry, Rajesh Agrawal, and other officials.