The Indian rupee tumbled 72 paise to close at a new all-time low of 91.70 per US dollar on Wednesday, weighed down by rising geopolitical tensions, uncertainty over the India-US trade deal, and continued foreign investor outflows from domestic equities.
The currency opened weaker at 91.08 and slipped further to an intraday record low of 91.75 before recovering slightly to end the day at 91.70, compared to the previous close of 90.98.
Market experts said the fall was driven by sustained FPI selling, weak global risk sentiment, and strong importer demand for dollars. Slower exporter dollar conversions also added pressure, even as hedging activity remained high.
So far in January, FPIs have sold Indian equities worth Rs 30,345 crore, following net outflows of Rs 1.66 lakh crore in 2025. A sharp rise in bullion prices has further strained the rupee by increasing the import bill. Forex participants noted that RBI intervention is helping control volatility, but it has not reversed the overall weakening trend. The central bank has been more active in the forwards market and has used buy-sell swaps to manage liquidity.
Rupee slumps 72 paise to fresh record low of 91.70 amid global tensions and trade deal uncertainty
