Rupee hits all-time low: The Indian rupee breached the psychologically crucial 91-per-dollar level on Tuesday, January 20, 2026, extending its recent losing streak amid sustained foreign fund outflows and renewed global trade concerns.
The domestic currency opened 2 paise weaker at 90.93 per dollar, compared with Monday’s close of 90.90. Selling pressure intensified during the session, dragging the rupee to an intraday low of 91.01 per dollar.
On Monday, the rupee had already depreciated 12 paise, ending near its record low closing level. The currency had earlier touched its weakest-ever intraday level of 91.14 on December 16, 2025, while its lowest closing level of 90.93 was also recorded last month.
Global factors weigh on Rupee
Forex market participants believed that the latest decline in rupee can be attributed to a mix of adverse global and domestic developments. Renewed tariff threats by US President Donald Trump, particularly against European nations over the Greenland dispute, have reignited global trade tensions and triggered a risk-off sentiment across financial markets.
Adding to the pressure, the US dollar index strengthened as expectations firmed that the US Federal Reserve may keep interest rates higher for longer, supported by a resilient labour market.
Data released by the US Bureau of Labor Statistics showed that the American economy added around 50,000 jobs in December 2025, slower than November’s 56,000, while the unemployment rate edged down to 4.4 per cent from a revised 4.5 per cent.
FPI outflows weigh on Rupee
Back home, heavy selling by foreign portfolio investors (FPIs) has emerged as the most immediate drag on the rupee. FPIs have consistently been the net sellers of Indian equities for past several months, pulling out over Rs 29,315 crore (around $3 billion) so far in 2026.
The persistent outflows have pushed the rupee into the list of the weakest-performing major Asian currencies, as global investors increasingly shift funds toward safe-haven assets such as gold and US Treasuries.
Extension of a tough 2025 for Rupee
The current weakness is a continuation of a bruising trend seen in 2025, when the rupee depreciated by nearly 6 per cent, breaching the ₹90 mark for the first time in December. Last year also witnessed a record FPI outflow of ₹1.66 trillion, the largest in recent history.
So far in 2026, the rupee has already declined by about 1.1 per cent in just the first twenty days of January.
While the Reserve Bank of India (RBI) has intervened intermittently to smooth excessive volatility, market participants believe the central bank is largely allowing the currency to find its level amid shifting global macro and geopolitical dynamics.
