Indian rupee closes at record low of 91.69 against US dollar amid Greenland dispute, FII selling

Indian rupee hits a fresh record low of 91.74 against US dollar amid Greenland dispute, FII selling

• Rupee hits record low of 91.7450 against US dollar amid risk aversion
• FPIs sold Rs 33000 crore in equities in January, pressuring domestic markets
• Sensex and Nifty drop, Nifty dips below 25000 for first time in 4 months.

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Indian rupee has once again come under a huge pressure on January 21, after it hit a fresh record low of 91.74 against the US dollar during the afternoon trade due to risk aversion linked to the Greenland dispute and consistent selling by the foreign investors from Indian equities, currency experts said.

The local currency was trading at 91.68 against the US dollar at 2:12 PM, had hit 91.74 against the US dollar in afternoon trade. It opened at 91.08 against the greenback as against previous close of 90.9 against the greenback. It closed down 0.8% at record low of  91.69.

“Rupee again faltered to a new low of 91.74 as Trump's Greenland issue, Japan bonds selloff and risk-off sentiment takes it lower with equities also down, keeping markets on a sixth straight day of decline,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. This is the biggest single-day fall for rupee in last three months.

With the current fall, the domestic currency turned out to be the second worst performing currency among Asian peers with a fall of 1.98 percent so far in 2026.

Bhansali added that FPIs have offloaded Rs 33,000 crore in Indian equities so far in January, with net sales on 12 days pressurizing domestic markets. “Delays in India-US Trade deal, higher US tariffs on Indian exports and elevated dollar demand from importers particularly those dealing in precious metals has exacerbated the slide.”

Further, the benchmark equity indices Sensex and Nifty extended their losses on Wednesday, slipping further after a sharp sell-off in the previous session, amid weak global cues and rising geopolitical concerns.

In early trade, the Sensex declined 1,056.02 points, or 1.28 percent to an intraday low of 81,124.45, while the broader Nifty fell 312.7 points, or 1.23 percent to 24,919.80, slipping below the 25,000-mark for the first time in over four months. However, a swift recovery led markets into green but again a selloff was seen where Sensex fell 500 points from day's high and Nifty fell below 25,150.