Indian rupee hits record low of 91.99 versus US Dollar

Indian rupee hits record low of 91.99 versus US Dollar

• Rupee hits record low of 91.99 against US dollar, down 2 percent this year
• RBI likely intervened to slow rupee's fall near the key 92 level
• US yields rise post-Fed meeting, pressuring Asian currencies like the rupee.

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The Indian rupee hit an all-time low against US Dollar on January 29, as continued weakness in foreign capital flows and corporate rush to hedge against further depreciation overshadowed impulses from a buoyant domestic economy.

The rupee declined to 91.99, eclipsing its previous all-time low of 91.96 hit last week.

The currency has declined 2% on the year so far and nearly 5% since US President Donald Trump imposed steep tariffs on India's merchandise exports to its largest market.

The Reserve Bank of India likely intervened before the local spot market opened on Thursday, traders said. The intervention was likely intended to slow the fall as the rupee approached the psychologically important 92 level, a trader at a foreign bank said.

The dollar index recovered slightly on Wednesday. The Federal Reserve's policy decision had little overall impact on the dollar, while U.S. Treasury yields rose after the Fed acknowledged that inflation remained elevated and the labour market continued to stabilize.

During the press conference, Chair Jerome Powell remained noncommittal about conditions for future cuts.

"Our economists believe further easing primarily depends on evidence of disinflation, which will likely come later in 2026. Hence, they retain their outlook for rate cuts in June and September," analysts at Morgan Stanley said in a note.

Asian currencies were mostly down on the day, pressured by the rise in US yields.

The rupee has declined to near 92 levels after breaking past 91 for the first time only six trading sessions earlier. The central bank has maintained it does not target any level or band on the currency and only steps in to curb excessive volatility.