Rupee hits all-time low of 91.18 against dollar: Key drivers

The Indian rupee opened at an all-time low of 91.28 against the US dollar on Wednesday (January 21), pressured by global risk aversion, sustained dollar demand, and continued foreign investor outflows.

Geopolitical uncertainty and renewed trade-related signals from the United States unsettled global markets, prompting investors to scale back exposure to emerging market assets. The cautious mood limited risk-taking despite softness in the dollar against major currencies.

Domestically, weakness in equity markets added to the strain.

Benchmark indices opened lower as foreign investors continued to pare holdings, reducing dollar inflows and tightening conditions in the local currency market.

US Treasury yields moving to multi-month highs reinforced demand for dollar assets, keeping pressure on the rupee even as the dollar index edged slightly lower.

Market participants said the currency’s move beyond earlier technical levels has shifted near-term focus higher, while intervention by the Reserve Bank of India (RBI) remains a key stabilising factor.

In broader markets, Brent crude prices fell over 1% to around $64 per barrel, offering limited immediate relief to the currency. The dollar index was marginally lower at 98.59.

-With agencies inputs