The recent have added pressure on Indian exports while global demand is still weak. The increase in H-1B visa fees will hit Indian IT professionals, as they account for more than 70% of visas issued to workers in 2024.
Analysts highlighted that while the (RBI) has been supplying dollars through state-run banks, intervention has been modest.
“The RBI has limited capacity for direct currency intervention, which is why the rupee continues to touch new lows against multiple currencies,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
Some inflows from domestic IPOs, estimated at around Rs. 7,500 crore, provided temporary relief but were quickly absorbed by strong dollar demand.
