Rupee Plunges to Record Low Against US Dollar

The Indian rupee experienced a significant decline, closing at an all-time low of 91.65 against the US dollar on Wednesday. This drop was influenced by ongoing foreign fund outflows and increased uncertainty in global markets.

Notably, this marks a new record low for the rupee, surpassing its previous low of 91.14 set on December 16, 2025. Throughout this month, the local currency has depreciated by 1.50%, with the current geopolitical landscape being a contributing factor.

The escalating tensions in Europe, particularly regarding the Greenland issue and potential tariffs, combined with a negative trend in the domestic market, have further exacerbated the situation for investors.

Starting at 91.05, the rupee struggled throughout the day and reached an intraday low of 91.74 against the US dollar. Ultimately, it settled at the all-time low of 91.65, marking a significant 68 paise decrease from its previous closing rate.

This decline represents the most substantial single-day drop for the rupee since November 21 of the previous year, when the currency plummeted by 98 paise.

Market experts attribute the pressure faced by emerging economies like India to volatile capital flows. The ongoing geopolitical tensions, including disputes over Greenland and control of Venezuela’s oil reserves by the US, have created ripple effects globally.

Looking ahead, the pending trade agreement between India and the US is seen as a crucial stabilizing factor that could boost confidence and bilateral commerce. Until then, the rupee remains vulnerable to external shocks, with the Reserve Bank of India relying on its strong forex reserves to manage the situation.

Analysts highlight that foreign capital outflows from domestic equities and delays in a US trade deal have contributed to the rupee’s current state. The currency faces immense pressure due to global geopolitical uncertainties, with intermittent central bank interventions struggling to provide significant support.

Despite these challenges, technical analysis suggests that the USD-INR pair may find support at 91.08, with resistance likely at 92.05.

On the international front, the dollar index, measuring the greenback’s strength against a basket of currencies, saw a slight decline. Additionally, Brent crude oil prices dropped in futures trade, while domestic equity markets experienced a decline.

Foreign institutional investors have been actively offloading equities, adding to the market’s volatility. The situation remains fluid, with various factors contributing to the rupee’s performance against the US dollar.