Muscat: The Indian rupee hit a historic low on Tuesday, crossing Rs 230 against one Omani rial for the first time. Exchange houses in Oman were quoting around Rs 230 per rial, while Bank Muscat’s mid-day rate stood at Rs 230.1 at 12 pm.

The milestone reflects the rupee’s broader weakness in global markets. Earlier in the day, the currency slid to an all-time low of 88.62 per U.S. dollar, surpassing its previous record of 88.4550 set just two weeks ago.

The decline was triggered by a recent hike in U.S. H-1B visa fees, a move that could slow the deployment of Indian professionals to the United States and dent the profitability of India’s IT sector. Analysts warn that the impact on technology firms may weigh on foreign equity inflows, while reduced worker mobility could also affect remittance flows — a vital source of foreign exchange for India.

The pressure comes on top of stiff U.S. tariffs on Indian goods, now at 50 percent — the highest among Asian economies. Together, these factors have kept the rupee under sustained pressure, even as the U.S. dollar index has softened.

According to currency strategists, the Reserve Bank of India (RBI) is allowing a gradual, managed depreciation of the rupee, intervening periodically to smooth volatility rather than defend any specific level. On Tuesday, the central bank was believed to have sold dollars through state-run banks around the 88.50 level before allowing the rupee to weaken further.

Foreign investors have withdrawn more than $15 billion from Indian equities in 2025, further straining capital inflows. The rupee’s underperformance against regional peers has amplified its slide against hard currencies, translating into the record low against the Omani rial.

For Oman’s large Indian expatriate community, the new exchange rate means higher value for remittances sent back home. Exchange houses reported brisk activity on Tuesday as many rushed to take advantage of the historic levels.

2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).