USD Vs INR: Why the Rupee Fell to a Record Low of 91.19

USD Vs INR: Rupee Slides to Record Low of 91.19 Against Dollar Amid FPI Outflows, Dollar Volatility and Global Uncertainty

The USD Vs INR exchange rate grabbed market attention as the Indian rupee slipped to a fresh all-time low of 91.19 against the US dollar, reflecting mounting pressure from both global and domestic factors. The fall marked a significant milestone in the currency’s recent downtrend and highlighted growing investor caution.

In early trade, the rupee weakened by 6 paise, opening at 91.08 and later sliding nearly 0.24% to touch the record low of 91.19. This surpassed the previous historic low of 91.0750, recorded in mid-December 2025.

What Is Driving the Fall in USD Vs INR?

Several interlinked factors have contributed to the rupee’s sharp decline. Market participants point to strong dollar demand, continued foreign fund outflows, weak domestic equities, and rising global uncertainty as key reasons behind the pressure.

One major factor weighing on the rupee is robust dollar demand from metal importers, which has increased demand for the greenback in the spot market. At the same time, foreign portfolio investors (FPIs) have continued to pull money out of Indian equities, adding further strain to the currency.

Weak sentiment in domestic stock markets has also played a role, reducing risk appetite and pushing investors toward safer assets like the US dollar.

Global Uncertainty and Geopolitical Tensions

Global developments have amplified volatility in the USD Vs INR pair. Analysts note that geopolitical tensions among NATO members and uncertainty around US strategic interests — particularly linked to rare-earth resources in Greenland — have kept global markets on edge.

These uncertainties have made investors cautious, encouraging a shift toward the dollar and putting emerging market currencies, including the rupee, under pressure.

Dollar Index Remains Volatile

The dollar index has shown sharp swings in recent sessions, reflecting rising global uncertainty. It recently ended lower despite ongoing geopolitical tensions, largely due to heavy selling in US equities and escalating trade tensions between the US and European nations.

Aggressive tariff rhetoric and the threat of retaliatory measures have unsettled global financial markets. However, gains in US 10-year bond yields have limited the dollar’s downside, keeping the broader tone volatile rather than weak.

Analysts expect the dollar index to remain unstable in the near term, which could continue to influence the USD Vs INR movement.

Read more: Political Roundup: Key Global Power Shifts on Jan 17, 2026

Domestic Factors Adding Pressure on the Rupee

On the home front, the rupee has been weighed down by persistent selling in Indian equities and sustained FPI outflows. Investors remain cautious ahead of key domestic and global events, preferring to reduce exposure to risk assets.

Another major concern is the rise in crude oil prices. Higher oil prices increase India’s import bill, putting additional pressure on the rupee and widening the current account deficit.

However, some analysts believe that progress on the proposed India–EU free trade agreement could offer limited support to the rupee at lower levels, potentially cushioning further downside.

Key Events Markets Are Watching

Market participants are closely tracking upcoming triggers that could influence the USD Vs INR pair. These include:

• The Union Budget, scheduled for February 1, 2026, which could set the tone for fiscal policy and investor confidence

• The US Federal Reserve’s policy decision, expected later this month, which may add volatility across global currency markets

Until clearer signals emerge, the rupee is expected to remain range-bound with sharp intraday movements.

Technical View on USD Vs INR

From a technical standpoint, the USD-INR futures contract has extended its upward momentum and is trading above its key moving average support near 90.42. Momentum indicators continue to show strength, suggesting that the pair may remain firm in the short term.

Read more: PM Modi Reviews Bangalore Suburban Rail Project, Pushes States to Speed Up Delayed Works

Immediate support is seen in the 90.74–90.45 zone, while resistance is placed between 91.35 and 91.55. As long as the pair holds above the 90 level, analysts expect it to trade within a broader 89.85 to 92.00 range this week.

What Lies Ahead

The outlook for USD Vs INR remains volatile. Global risk sentiment, FPI flows, crude oil prices, and central bank cues will continue to drive near-term movement. While intermittent support may emerge at lower levels, sustained recovery in the rupee is likely to depend on improved global stability and stronger domestic market confidence.

For now, the record low serves as a reminder of how sensitive the rupee remains to global shifts — and why currency markets are likely to stay on edge in the days ahead.

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