Daijiworld Media Network - Mumbai
Mumbai, Jan 20: The Indian rupee breached the psychologically crucial 91-per-dollar mark on Tuesday, January 20, 2026, extending its recent weakness amid sustained foreign fund outflows and heightened global uncertainty.
The domestic currency opened marginally lower at 90.93 against the US dollar, compared to Monday’s close of 90.90, but soon slipped further to hit an intraday low of 91.01. This came after the rupee had already depreciated by 12 paise in the previous session, closing just shy of its record low.
Market participants noted that relentless selling by foreign portfolio investors (FPIs) and a revival of global “risk-off” sentiment were key factors weighing on the rupee. On December 16, 2025, the rupee had touched its all-time intraday low of 91.14 and recorded its weakest closing level of 90.93 against the greenback.
Forex analysts described the current slide as the result of a “perfect storm” of domestic and international pressures. Renewed tariff threats by US President Donald Trump — reportedly targeting European nations amid a dispute over Greenland — have unsettled global markets and triggered a flight to safe-haven assets.
“The US Supreme Court’s impending decision on the legality of the Trump tariffs will have a direct impact on global markets. At present, markets are firmly in a risk-off mode, with gold and silver seeing strong buying interest,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Supporting the dollar further is the resilience of the US labour market, which has strengthened expectations that the US Federal Reserve will keep interest rates higher for longer. Data from the US Bureau of Labor Statistics showed that the American economy added around 50,000 jobs in December 2025, while the unemployment rate edged down to 4.4 per cent.
On the domestic front, persistent FPI selling has emerged as the most immediate pressure point for the rupee. Foreign investors have been net sellers of Indian equities for several months, and so far in 2026 alone, they have offloaded shares worth over Rs 29,315 crore, or roughly $3 billion. This has pushed the rupee into the list of the weakest major Asian currencies.
“The ongoing global uncertainty, combined with a sustained break above the 91.07 level, could open the door for a move towards the 91.70–92.00 zone, unless the Reserve Bank of India intervenes actively,” said Amit Pabari, Managing Director of CR Forex Advisors. He added that any near-term correction could find support in the 90.30–90.50 range.
The latest slide also continues the rupee’s difficult run in 2025, during which the currency weakened by nearly six per cent and crossed the Rs 90 mark for the first time. That year witnessed record FPI outflows of Rs 1.66 trillion, underscoring the scale of pressure on Indian financial markets.