The Indian rupee hit an all-time low of 92 against the US dollar on Friday, January 23, 2026. While it closed at a record low of 91.88, the currency later recovered marginally to 91.41 following easing geopolitical concerns.
What Was The Record Low Breached?
The rupee briefly touched an unprecedented level of 92 intraday against the US dollar. It settled at 91.88 at closing, marking it as the worst-performing Asian currency during that week.
What Were The Primary Drivers For The Fall?
Foreign Portfolio Investors withdrew ₹36,500 crore from Indian equities in the first 22 days of January. This followed a net outflow of $18.91 billion in 2025, creating sustained dollar demand pressure in the market.
Were There Any Global Risk Factors Involved?
Yes, the depreciation was influenced by a risk-off sentiment in global markets. This sentiment was driven by factors such as ongoing trade tensions, various geopolitical uncertainties, stalled India-US trade talks, and US tariff policies under President Trump.
Did The Rupee Show Any Signs of Recovery?
The rupee did show a partial recovery, strengthening by 17 paise to 91.41. This happened after US President Trump softened his stance on tariff threats against Europe, which improved investor risk appetite and allowed emerging market currencies to recover slightly.
