The rupee depreciated 7 paise to close at a record low of 90.97 (provisional) against the US dollar on Tuesday, as strong dollar demand from metal importers and persistent foreign fund outflows dented investor sentiment.
Forex traders said rising geopolitical uncertainties, including renewed US expansionary signals, have increased risk aversion and kept emerging market currencies under pressure.
Moreover, a sluggish domestic stock market triggered by an exodus of foreign capital further weighed on the local unit, they said.
At the interbank foreign exchange, the rupee opened at 90.91 and lost ground, touched an intraday low of 91.06, and finally ended the day at an all-time low of 90.97 (provisional) against the American currency.
On Monday, the rupee depreciated by 12 paise to close at 90.90 against the greenback.
On December 16, 2025, the rupee reached its lowest intra-day level of 91.14 and its previous lowest closing level of 90.93 against the American currency.
“The Indian rupee traded with a negative bias and slipped below the 91-mark on risk aversion in global markets and persistent FII outflows. However, a weak dollar and intervention by the RBI prevented a sharp fall,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.
Choudhary further noted that the rupee is expected to trade with a negative bias on foreign fund outflows and risk aversion in global markets over the US stance on Greenland.
“Uncertainty over trade deal talks may also pressurise the rupee. However, a weak dollar and any RBI intervention may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 90.70 to 91.25,” he said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.91 per cent lower at 98.48.
Brent crude, the global oil benchmark, was trading at $63.94 per barrel in futures trade.
On the domestic equity market front, Sensex tumbled 1,065.71 points to settle at 82,180.47, while the Nifty dived 353 points to 25,232.50.
Foreign institutional investors offloaded equities worth ₹3,262.82 crore on Monday, according to exchange data.
Published on January 20, 2026
