The Indian rupee breached another all-time low to around 88.5 per dollar on Tuesday, pressured by steep US tariffs and higher visa fees. In addition to tariffs that are steeper than those faced by other Asian countries, the currency is also now contending with the fallout of President Trump’s $100,000 fee on new H-1B visas, with Indians accounting for about 71% of the nearly 400,000 issued in 2024. The move raises risks for India’s IT services sector and remittance flows, while also dampening investor confidence. Traders said the RBI likely intervened via state-run banks to stem further losses. Meanwhile, expectations are building for a 25 bps rate cut in the Sept-Oct policy meeting. The State Bank of India said benign inflation makes a rate cut the “best possible option,” with CPI projected to stay near 4% or lower, reinforcing the case for early action. Markets now await the outcome of trade talks between India’s Commerce Minister Piyush Goyal and US Trade Rep. Greer.