Rupee ends at record low of 91.99 against dollar amid foreign outflows, global risk aversion

The rupee settled at its all-time closing low of 91.99 against the US dollar on Wednesday, weighed down by persistent foreign fund selling and risk-off sentiment in global markets, even as softer crude prices and a weaker dollar offered limited relief, PTI reported. At the interbank foreign exchange, the domestic unit opened at 91.95 and strengthened to an early high of 91.82 before losing momentum and touching an intra-day low of 92 against the greenback amid geopolitical uncertainty and sustained foreign portfolio outflows. The rupee eventually ended flat at 91.99. On Wednesday, it had already slipped 31 paise to revisit its lowest-ever closing level, while an intra-day low of 92 was earlier recorded on January 23. Forex traders said pressure on the rupee intensified due to elevated global uncertainty and foreign fund selling, while a surge in crude oil prices earlier in the session also weighed on sentiment. During the day, Finance Minister Nirmala Sitharaman tabled the Economic Survey in Parliament, flagging risks from the external sector and volatile capital flows.The dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.07% lower at 96.37, while Brent crude, the global oil benchmark, fell 1.83% to USD 69.64 per barrel in futures trade.“Persistent dollar strength, elevated US bond yields, and continued foreign portfolio outflows have collectively kept emerging market currencies under stress, with the rupee being no exception,” said Akshat Garg, Head, Research & Product, Choice Wealth. He added that month-end importer demand and precautionary hedging further accentuated the move, though the RBI is expected to intervene only to smooth excessive volatility rather than defend any specific level aggressively.“From a medium-term perspective, India's fundamentals remain relatively resilient, supported by stable growth and manageable inflation. However, near-term currency direction will continue to be guided by global cues — particularly the US rate trajectory, capital flow trends and geopolitical developments,” Garg said, adding that investors should view the current depreciation as part of a global realignment rather than a structural deterioration.Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, “The rupee hit an all-time low amid geopolitical uncertainty and foreign outflows. Surge in crude oil prices, too, weighed on the rupee. Finance Minister Nirmala Sitharaman tabled the Economic Survey flagging concerns over risks from the external sector and foreign outflows. However, positive domestic markets and weak dollar cushioned the downside.” He expects the USD-INR spot to trade in the range of Rs 91.60–92.20.On the domestic equity front, the Sensex rose 221.69 points to settle at 82,566.37, while the Nifty ended 76.15 points higher at 25,418.90. Foreign institutional investors sold equities worth Rs 393.97 crore during the session, according to exchange data.The Economic Survey noted that the rupee’s depreciation to around 92 per dollar does not reflect India’s underlying economic strength. “In other words, the rupee, therefore, is punching below its weight,” it said, adding that investor reluctance to commit funds warrants examination at a time when inflation is under control and the growth outlook remains favourable.