Indian Rupee Falls to Lowest on Record

2026-01-21 04:59 By Erika Ordonez 1 min. read

The Indian rupee weakened toward 91.7 per dollar, extending losses to a record low, pressured by sustained foreign portfolio investor selling and strong corporate and importer dollar demand.

Foreign investors have withdrawn nearly $3 billion from Indian equities in January, following roughly $18 billion of outflows last year.

Pressure was further compounded by US tariffs of up to 50% on Indian exports and steady import demand, while lingering geopolitical tensions between the US and Europe drove investors toward safe-haven assets.

Looking ahead, investors are eyeing India’s annual budget scheduled for Sunday, though limited pre-emptive positioning is expected.

The rupee received some support from the conclusion of long-running trade negotiations between India and the European Union, a deal officials have hailed as historic, particularly amid strained US relations.



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