MUMBAI: Panic gripped the foreign exchange markets on Tuesday as the rupee dropped by 0.52% to close at 88.7925 against the greenback, an all-time low. This came amid sustained selling by foreign funds fearing that the double-whammy blows of steep US tariffs and an increase in H-1B visa fees would now disrupt services exports apart from crimping remittances.

The previous low was 88.47 on September 11. Traders are expecting the pressure on the rupee to continue, with a level under 90 not very far off.

The rupee opened the day down 13 paise but soon lost ground, touching an all-time intraday low of 88.82 against the US dollar, and finally settled for the day at 88.7925 losing 51 paise from its previous close.

Forex traders said the rupee's fall occurred as they analysed the likely repercu

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