Rupee slides to fresh record low of 91.64 against US dollar

The Indian rupee on Wednesday tumbled sharply to an all-time closing low of 91.64 against the US dollar, weighed down by sustained foreign fund outflows, rising global geopolitical tensions and a broad risk-off mood in international markets.

At the interbank foreign exchange market, the rupee opened weaker at 91.05 and slipped further during the session to hit an intraday low of 91.74. It finally settled at 91.64 (provisional), marking a steep decline of 67 paise from its previous close. This also surpassed its earlier lifetime low of 91.14 recorded on December 16, 2025.

Forex traders said the domestic currency has now depreciated about 1.5 per cent so far this month, with pressure intensifying due to heightened global uncertainty and volatile capital flows. According to Dilip Parmar, Research Analyst at HDFC Securities, the fall marked the sharpest single-day decline since November 21, 2025.

Market participants pointed to escalating geopolitical tensions as a major trigger for the rupee’s weakness. Rising strains in Europe linked to the Greenland issue, concerns over potential trade tariffs, and broader instability in global trade dynamics have dented investor confidence. Weakness in domestic equities also added to the pressure on the currency.

Abhishek Bisen, Head–Fixed Income at Kotak Mahindra AMC, said emerging economies like India are facing stress from unpredictable capital movements. He noted that geopolitical developments, including strained US-Europe relations and uncertainties surrounding global energy resources, are creating ripple effects across financial markets.

For India, Bisen said, the pending trade agreement with the US could act as a stabilising factor if concluded, potentially improving sentiment and boosting bilateral trade. He added that while the rupee may remain vulnerable in the near term, India’s strong foreign exchange reserves give the Reserve Bank of India adequate room to manage volatility. The recent depreciation has also made the rupee relatively cheaper on a real effective exchange rate basis, which could support exports.

Meanwhile, the dollar index slipped marginally by 0.02 per cent to 98.61. Brent crude fell 1.88 per cent to USD 63.70 per barrel. Domestic equities closed lower, with the Sensex down 270.84 points and the Nifty shedding 75 points. Foreign institutional investors sold equities worth Rs 2,938.33 crore on Tuesday.