Rupee slumps 73 paise to 91.69 against dollar
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The rupee suffered its sharpest single-session decline since November 21, 2025, when it fell by 93 paise.
On Wednesday, the rupee plummeted to a historic low, closing at 91.6950 against the U.S. dollar. The decline stemmed from multiple pressures, including foreign portfolio investor withdrawals from equities, corporate dollar requirements, geopolitical tensions surrounding U.S.-EU negotiations over Greenland, and unresolved trade discussions between India and the U.S.
The currency weakened by approximately 73 paise from its previous close of 90.97. After opening at 91.10, it touched an intraday low of 91.7425 before recovering marginally following suspected central bank intervention.
This marks the rupee’s steepest daily slide since November 21, 2025, when it fell by 93 paise.
Market analysts highlighted deteriorating global risk sentiment as a key driver. Amit Pabari of CR Forex Advisors noted: “The rupee breached the 91.70 threshold amid worsening risk appetite. U.S. President Trump’s tariff warnings against European nations regarding Greenland have escalated trade tensions, triggering defensive moves across global markets.”
Pabari observed that falling equities and rising gold prices reflect investor caution, creating unfavorable conditions for emerging-market currencies like the rupee.
Anindya Banerjee of Kotak Securities added: “Sustained foreign outflows, global geopolitical strains, and persistent importer hedging have driven USD/INR to unprecedented levels. While the RBI is moderating volatility, the rupee may test 92-92.50 soon. Critical factors include India-EU trade negotiations and upcoming budget announcements.”
Market participants anticipate potential consolidation after the sharp decline. Pabari suggested resistance near 92.00 could prompt reversal toward 90.50-90.70 with continued RBI support.
Global Headwinds Intensify
Analysts noted that current valuations already reflect substantial global uncertainties. However, improved capital flows and risk sentiment would be necessary for sustained rupee recovery, with markets closely monitoring international trade developments and domestic fiscal policy signals.
January 21, 2026
