Indian Rupee hits record low as the domestic currency closed at a fresh all-time low of ₹91.64 against the US dollar on Friday. The rupee weakened marginally by 3 paise from its previous close of ₹91.58, reflecting continued pressure from foreign capital outflows and strong dollar demand.
On a weekly basis, the rupee has depreciated by 64 paise, while the total decline since the beginning of the month has reached ₹1.64, highlighting sustained weakness in the currency market. Market participants say the trend clearly indicates that the Indian Rupee hits record low amid adverse global and domestic factors.
Foreign Investor Selling Weighs on the Rupee
One of the primary reasons behind the fall is aggressive selling by foreign institutional investors. Data shows that foreign investors have pulled out nearly ₹33,598 crore from Indian equity markets as of January 23, 2026. This persistent selling has increased dollar demand, putting additional pressure on the rupee.
As equity markets struggled to hold gains, currency markets reacted negatively. Analysts note that whenever large-scale equity outflows occur, the Indian Rupee hits record low due to rising demand for dollars from exiting investors.
Global Uncertainty Adds to Pressure
Beyond capital outflows, global uncertainties have further weakened the rupee. The delay in the India–US trade deal has dampened sentiment, while geopolitical developments involving the US and Greenland have supported the dollar globally. As a result, emerging market currencies, including the rupee, have faced selling pressure.
In addition, importers and corporates rushed to hedge their dollar exposure ahead of the long weekend and the upcoming Union Budget, further contributing to the situation where the Indian Rupee hits record low.
Market View: USD-INR May Test 92
Commenting on the rupee’s performance, Dilip Parmar, Research Analyst at HDFC Securities, said the currency slipped to record lows due to strong dollar demand from importers and corporates.
He added that the pressure intensified as domestic equities witnessed another round of liquidation, erasing the tentative recovery seen earlier in the week. According to him, the outlook for spot USD-INR remains bullish, and the pair could move beyond the psychological 92 level, while immediate support is seen near 91.10. This reinforces the view that the Indian Rupee hits record low may not be the end of the weakness.
What to Watch Going Ahead
Going forward, currency traders will closely monitor:
- Foreign investor flow trends
- Global dollar strength
- Union Budget announcements
- Progress on India–US trade negotiations
Until clarity emerges on these factors, analysts believe the Indian Rupee hits record low trend could continue, with volatility remaining elevated in the near term.
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