Rupee slides 76 paise to record low 91.73
On Tuesday, the rupee slipped 7 paise, closing at 90.97 against the US dollar amid market pressures.
On Wednesday, January 21, the Indian rupee plunged sharply, crashing 76 paise to settle at a record low of ₹91.73 against the U.S. dollar amid growing market unease and capital flight, according to traders and market data.
The decline pushed the local unit well past its earlier all‑time low of ₹91.14 recorded in December 2025, underscoring just how fragile sentiment has become in currency markets.
What Drove the Sudden Slide
Several overlapping pressures combined to weaken the rupee and shake investor confidence:
Persistent Foreign Fund Outflows: Foreign investors continued to pull money out of Indian equities, exchanging rupees for dollars to take capital home. This heavier demand for dollars puts direct downward pressure on the rupee.
Heightened Global Risk Aversion: Risk‑off sentiment in global markets intensified as geopolitical tensions loomed, pushing investors toward safer assets like the U.S. dollar. One major contributing factor was increased uncertainty surrounding developments in Europe linked to the Greenland dispute, which rattled equity and currency markets worldwide.
Domestic Market Weakness: Back home, India’s major stock indices reflected the same nervous mood, with the Sensex and Nifty both lower on the day as broader market selling continued.
At the interbank forex market, the rupee opened around ₹91.05 and slid steadily, touching lows near ₹91.74 against the greenback before closing at the record level.
Broader Market Ripples
The currency’s drop added to a tough session for domestic markets. After several sessions of declines in equity prices, stocks found some relief later in the week following global optimism, but the earlier losses had already reflected the ripple effects of the currency weakness.
The dollar index, which tracks the greenback against a basket of major currencies, was softer, signaling that the rupee’s slide was driven as much by domestic and emerging‑market pressure as by absolute dollar strength.
What It Means for Everyday India
A weaker rupee isn’t just a number on a screen — it affects the cost of goods and services that households rely on. When the rupee falls:
- Imported goods such as electronics, fuel, and travel become more expensive because it takes more rupees to buy the same dollar‑priced item.
- Travel abroad and education overseas become costlier for Indian families.
- Inflationary pressures can build up if the cost of imported energy and raw materials rises.
At the same time, some exporters benefit because their earnings in dollars convert into more rupees, slightly offsetting negative sentiment.
What Analysts Are Watching Next
Market experts are keeping a close eye on a few key factors that could shape the rupee’s path ahead:
- Foreign capital flows: Continued outflows could keep the rupee under strain, while renewed inflows might stabilize it.
- Geopolitical developments: Easing global tensions — especially in Europe and between major powers — could improve risk appetite.
- Policy moves: Actions by the Reserve Bank of India, including currency intervention or interest rate decisions, could help smooth volatility.
For now, the currency’s volatility reflects a complex mix of overseas shocks and domestic market psychology — and the effects are being felt from Dalal Street to the dinner table.