Rupee hits all-time low despite brief recovery attempts

The Indian rupee fell to an all-time low of 91.93 against the US dollar on Friday (January 23), as strong dollar demand from corporates and importers continued to weigh on the currency, despite some improvement in global risk sentiment.

The rupee weakened past its previous record low of 91.74 touched earlier.

Early gains proved short-lived as demand for the greenback outweighed supportive global cues.

Investor sentiment improved marginally after US President Donald Trump softened his stance on tariff threats against Europe linked to Greenland, easing immediate trade-war concerns. Forex traders said the softer rhetoric reduced near-term geopolitical anxiety and led to a modest correction in the dollar, helping emerging market currencies, including the rupee, recover slightly from intraday lows.

However, market participants said the rupee remains under pressure due to persistent foreign portfolio outflows amid elevated global geopolitical uncertainty. Traders also flagged the pending India–US trade agreement as a key stabilising factor for the currency.

“Until geopolitical risks ease and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks,” forex dealers said.

Amit Pabari, Managing Director at CR Forex Advisors, said much of the global risk appears to be priced into the rupee at current levels. “This opens the door for a phase of consolidation and a possible partial recovery if risk sentiment stabilises. The 92.00 level remains a strong resistance, while sustained RBI support could guide dollar/rupee back towards the 90.50–90.70 zone in the near term,” he said.

-With agencies inputs