A new low for rupee! Currency falls over 60 paise; reaches 91.74 against US dollar

Rupee hit a new low on Wednesday, falling more than 60 paise to reach 91.74 against the US dollar in early trade, extending its downward streak. Earlier on Tuesday, the currency had closed at a record low of 90.97, down 7 paise amid strong demand for dollars from metal importers and continued foreign fund outflows that weighed on investor sentiment.According to forex traders, geopolitical uncertainties, including fresh US expansionary signals, have increased risk aversion and placed additional pressure on emerging market currencies. In 2025 alone, the currency fell 4.95%. Furthermore, stock market’s sluggish performance, driven by the exit of foreign investors, also contributed to rupee’s decline. The currency had previously hit its lowest intra-day level of 91.14 and closing low of 90.93 against the dollar on 16 December 2025.Foreign institutional investors have offloaded over $2.7 billion from Indian debt and equities so far in January, according to NSDL data.Ritesh Bhansali, deputy CEO, Mecklai Financial Services told ET that there was mild intervention around 91/$1 levels, "and it seemed like the central bank was trying to protect the 91 level. The sentiment is not that great, foreign investors are selling from India, equities are in the red, yields on government bonds are high, and there's the hanging sword of geopolitical uncertainty,” “The intervention today was to control the pace of depreciation and not to change the course of the rupee. The central bank would not want to burn its reserves as there was good dollar demand today,” another senior trader from a PSU bank told the finance daily.Over the coming days, rupee is expected to continue trading with a depreciation bias.