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The rupee crashed 76 paise to close at an all-time low of 91.73 (provisional) against the American currency on Wednesday (January 21, 2026), pressured by persistent foreign fund outflow amid heightened uncertainty and risk-off sentiment in global markets.
The rupee recorded its previous all-time low of 91.14 on December 16, 2025, and so far this month, the local unit has fallen by 1.50%, forex traders said, adding that the depreciation can be attributed to heightened geopolitical uncertainty.
Rising tensions in Europe over the Greenland issue and potential tariffs, along with a negative trend in the domestic market, further dented investor sentiment, they said.
At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to touch an intraday low of 91.74 against the greenback. The domestic unit settled for the day at an all-time low of 91.73 (provisional), registering a decline of 76 paise from its previous close.
On Tuesday (January 20, 2026), the rupee depreciated 7 paise to close at 90.97 against the U.S. dollar.
“Emerging economies like India are facing pressure from volatile capital flows,” Abhishek Bisen, Head-Fixed Income, Kotak Mahindra AMC, said.
Besides, geopolitical tensions, including the Greenland dispute that has strained U.S.-Europe relations (which is a risk of NATO breakdown) and also the control of Venezuela’s oil reserves by the U.S., are creating ripple effects across the global trade, he said.
Mr. Bisen further noted that for India, the pending trade agreement with the U.S. remains a key stabilising factor, as its conclusion could boost confidence and bilateral commerce.
“Also, until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks. However, given the strong forex reserves, the Reserve Bank of India can manage the situation as the depreciation has made INR relatively cheaper on REER basis, which shall help shore up exports,” he said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.02% lower at 98.61.
Brent crude, the global oil benchmark, was trading 1.88% down at $63.70 per barrel in futures trade.
On the domestic equity market front, Sensex declined 270.84 points to settle at 81,909.63, while the Nifty dropped 75 points to 25,157.50.
Foreign institutional investors offloaded equities worth ₹2,938.33 crore on Tuesday (January 20, 2026) according to exchange data.
Published – January 21, 2026 04:38 pm IST
