Rupee Hits All-Time Low of 91.58 Against Dollar
In a concerning development, the Indian rupee depreciated by 61 paise to reach an all-time low of 91.58 against the American currency on Wednesday. This drop was attributed to persistent foreign fund outflows and a cautious global sentiment prevailing in the market.
Forex traders pointed to heightened tensions with Europe over the Greenland issue and potential tariffs as contributing factors to the investors’ cautious stance. Additionally, a negative trend in the domestic market further dampened investor sentiments.
At the interbank foreign exchange, the rupee started at 91.05 and fell to the record low of 91.58 against the US dollar, marking a significant decline of 61 paise from the previous close. The previous day, the rupee had depreciated by 7 paise to settle at a record low of 90.97 against the greenback.
It is worth noting that on December 16, 2025, the rupee had reached its previous lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.
The current geopolitical scenario, particularly involving Donald Trump’s Greenland threats, has disrupted the established global order that has long supported economic and defense cooperation among major economies and allies. As a result, geopolitics is now exerting a more significant influence on asset price movements than specific data points, as highlighted in a research note by IFA Global.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading slightly lower at 98.56. In the oil market, Brent crude, the global benchmark, was trading at USD 64.20 per barrel, down by 1.11% in futures trade.
On the domestic front, the Sensex was down by 266.58 points at 81,913.89, while the Nifty declined by 83.10 points to 25,149.40. Foreign institutional investors also offloaded equities worth Rs 2,938.33 crore on Tuesday, according to exchange data.
