The Indian rupee slipped 7 paise to a record low of 90.97 against the US dollar on Tuesday, pressured by strong dollar demand, foreign fund outflows, and risk aversion in global markets
Mumbai: The Indian rupee ended Tuesday at a record low of 90.97 (provisional) against the US dollar, falling 7 paise. Persistent foreign fund outflows and strong dollar demand from metal importers weighed on investor sentiment. The interbank forex market saw the rupee open at 90.91, touch an intraday low of 91.06, and close at 90.97.
Geopolitical uncertainties, including renewed US expansionary signals, increased risk aversion, keeping emerging market currencies under pressure. Analysts noted that a sluggish domestic stock market, triggered by foreign capital exiting equities, further dragged the rupee down.
Meanwhile, the Sensex tumbled 1,065.71 points to 82,180.47, and the Nifty fell 353 points to 25,232.50. Foreign institutional investors (FIIs) offloaded equities worth Rs 3,262.82 crore on Monday, according to exchange data.
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Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee is likely to trade with a negative bias due to ongoing FII outflows and global risk aversion, citing US–Greenland tensions as an additional factor. However, he added that a weaker dollar and potential intervention by the RBI could provide support, keeping the USD-INR spot range between 90.70 and 91.25.
Globally, the dollar index was down 0.91% at 98.48, while Brent crude futures traded at USD 63.94 per barrel.
The Indian rupee recorded its lowest closing against the US dollar in history on Tuesday, depreciating by 7 paise to 90.97. The decline follows Monday’s 12 paise fall to 90.90. The currency’s downward trend reflects persistent foreign capital outflows, strong demand for dollars by metal importers, and a risk-averse global investment environment.
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At the interbank forex market, the rupee opened at 90.91, reached an intraday low of 91.06, and settled at 90.97. Analysts cite geopolitical uncertainties, including expansionary policy signals from the US, as a key driver of volatility in emerging market currencies.
Domestic equities suffered simultaneously. The Sensex fell 1,065.71 points to 82,180.47, while the Nifty dropped 353 points to 25,232.50. Foreign institutional investors sold equities worth Rs 3,262.82 crore on Monday, exacerbating the rupee’s weakness.
Anuj Choudhary of Mirae Asset ShareKhan highlighted that US–Greenland tensions could add pressure on the rupee. He predicted that despite a negative bias, a weak dollar and potential Reserve Bank of India intervention could support the currency within the 90.70–91.25 range.
The dollar index, measuring the greenback against six major currencies, was down 0.91% at 98.48, while Brent crude futures traded at USD 63.94 per barrel, reflecting relatively stable global oil prices.
Published: 20 Jan 2026, 04:15 pm IST
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