Rupee Hits Record Low Against US Dollar, Closes at 91.88 Amid Market Pressure

Indian Currency Under Pressure from Global and Domestic Factors

The Indian rupee fell to a record low of 92 per US dollar during intraday trading on Friday before recovering slightly to settle at 91.88 (provisional). The sharp decline was driven by persistent foreign fund outflows, weak domestic equity markets, and a risk-averse global environment, according to forex market participants.

What Triggered the Rupee’s Fall?

At the interbank foreign exchange market, the rupee opened stronger at 91.45 and briefly touched an intraday high of 91.41 against the US dollar. However, the early gains faded quickly as selling pressure intensified. The domestic currency slipped to an all-time intraday low of 92.00 before ending the session at its weakest-ever closing level.

Forex traders said the rupee was weighed down by several factors, including:

• Sustained selling by foreign institutional investors (FIIs)

• Rising US Treasury yields

• Higher crude oil prices

• Weak sentiment in Indian equity markets

Recent Rupee Performance

On Thursday, the rupee had shown some resilience, rebounding from record lows to close 7 paise higher at 91.58 against the US dollar. However, the relief proved short-lived as fresh pressures emerged on Friday.

The previous record low closing level was recorded on January 21, when the rupee dropped 68 paise to 91.65.

Monthly and Yearly Trend

So far in January, the rupee has declined by nearly 200 paise, marking a fall of over 2 percent in just a few weeks. In 2025, the Indian currency had already weakened by around 5 percent, mainly due to strong dollar demand and continuous foreign capital outflows.

Expert Outlook on USD-INR

According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the rupee is expected to remain under pressure in the near term.

“We expect the rupee to trade with a negative bias due to ongoing FII selling and risk-off sentiment in global markets. Dollar demand from importers and hedgers could further weaken the currency,” he said.

However, he added that possible intervention by the Reserve Bank of India (RBI) and any weakness in the US dollar may provide some support at lower levels. The USD-INR spot rate is expected to move within a range of 91.60 to 92.30.

Global Market Cues

• The dollar index, which tracks the US currency against six major global currencies, was marginally higher at 98.36.

• Brent crude oil, the global benchmark, rose 1.03 percent to USD 64.72 per barrel, adding pressure on the rupee as India is a major oil importer.

Equity Markets Add to Pressure

Domestic stock markets closed sharply lower, further dampening sentiment:

• Sensex fell 769.67 points to end at 81,537.70

• Nifty 50 declined 241.25 points to close at 25,048.65

Exchange data showed that foreign institutional investors sold equities worth Rs 2,549.80 crore on Thursday, reinforcing concerns over capital outflows.

Conclusion

The Indian rupee’s fall to a historic low reflects a combination of global uncertainty, foreign investor exits, and rising external costs such as crude oil and US yields. While short-term volatility is likely to persist, market participants will closely watch RBI action, global dollar movement, and capital flow trends for cues on the currency’s direction.