Rupee hits record low of 91.5 against US Dollar: Here's why

Rupee hits record low of 91.5 against US Dollar: Here's why

• Rupee hits all-time low of 91.36 against US dollar amid global risk aversion
• RBI intervened to support rupee as foreign investors exited domestic stocks
• Sensex and Nifty fell sharply; foreign investors sold Rs 2,938 crore in equities

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The Indian rupee slipped 0.39% to an all-time low of 91.5 against US Dollar on January 21, as risk aversion linked to the Greenland dispute added downside pressure on the currency.

The rupee on Tuesday came within a whisker of its lifetime low, slipping to 91.0525, with bankers saying the Reserve Bank of India was present to support the currency for most of the session.

The S&P 500 Index slid about 2% on Tuesday, while the dollar index logged its steepest fall in three weeks and U.S. Treasuries weakened, underscoring the risk-off tone and the return of the "Sell America" theme.

Asian currencies were caught between a softer risk appetite and a weaker dollar, leaving them mixed with limited follow-through.

Further denting risk sentiment was a sell-off in Japanese bonds, which pushed yields to record highs on fiscal concerns.

The move is vying for market attention with the Greenland dispute, and investors focus on Wednesday will by on Trump’s interview at the at Davos, ING Bank said in a note.

A sluggish domestic stock market triggered by an exodus of foreign capital dented investors’ sentiment further, said forex traders.

At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to trade at 91.5 against the greenback, down 53 paise from its previous close.

On Tuesday, the rupee depreciated 7 paise to close at a record low of 90.97 against the US dollar.

"Markets were already uneasy when US President Donald Trump revived trade war rhetoric and renewed his push for Greenland. US Treasury yields jumped to four-month highs, while the dollar slipped for a second day - a sign that investors are questioning not just risk, but direction," CR Forex Advisors MD – Amit Pabari told PTI.

Pabari further noted that "persistent global unease, coupled with a sustained break above 91.07, could gradually open the door toward the 91.70–92.00 zone, unless restrained by active intervention from the RBI.

"On the downside, any corrective pullback is likely to find its first line of support in the 90.30–90.50 range." On December 16, 2025, the rupee reached its previous lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.05% lower at 98.59.

Brent crude, the global oil benchmark, was trading 1.11% lower at USD 64.20 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 385.82 points to 81,794.65 in opening trade, while Nifty declined 91.5 points to 25,141.

Foreign institutional investors offloaded equities worth Rs 2,938.33 crore on Tuesday, according to exchange data.