USD Vs INR: Rupee Slides To Record Low Of 91.19 Against Dollar: What’s Driving The Fall?

USD vs INR: The rupee weakened to a fresh record low on Wednesday, slipping 6 paise to trade at 91.19 against the US dollar in early deals.

The local currency came under pressure due to strong dollar demand from metal importers and continued foreign portfolio investor (FPI) outflows. A weak tone in domestic equity markets further weighed on sentiment.

The rupee opened at 91.08 against the US dollar. The local currency fell about 0.24% to a record low of 91.19.

The currency’s previous all-time low was 91.0750 set in mid-December 2025.

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, “The currency remains range-bound with participants awaiting fresh triggers from the Union Budget due on 1Feb26, while the US Fed’s

policy decision later this month is expected to add volatility. The rupee is likely to trade between 90.45 and 91.45 in the near term.”

Trivedi attributed the fall in rupee to geopolitical tensions among NATO members and uncertainty around US interests in Greenland, driven by its rare-earth resources, which kept market sentiment cautious.

Dollar index volatile

Manoj Kumar Jain said the dollar index has remained highly volatile, ending 0.50 per cent lower at 98.37 on Tuesday amid rising global uncertainty.

He attributed the weakness to escalating trade tensions between the US and European nations, with aggressive tariff threats and possible retaliatory measures unsettling global financial markets. Heavy selling in US equities also dragged the dollar index lower.

However, gains in US 10-year bond yields capped the downside. Jain expects the dollar index to stay volatile this week, with a likely trading range of 97.70 to 100.80 as geopolitical risks persist.

Rupee under pressure

On the domestic front, the rupee extended its decline and slipped to a one-month low. Jain said persistent selling in Indian equities and continued FPI outflows are weighing on the currency.

Rising crude oil prices have added to the pressure, as higher energy costs increase India’s import bill and hurt the rupee.

He, however, noted that the proposed India–EU free trade agreement could lend some support to the rupee at lower levels.

Jain expects the rupee to remain volatile this week, with the USD-INR pair likely to trade in the 89.85 to 92.00 range, tracking movements in the dollar index, domestic markets and global cues.

Technical view on USD-INR

From a technical perspective, Jain said the USD-INR January 28 futures contract has extended its gains and is trading above its key moving average support at 90.42.

The RSI remains above 60, indicating strength, while the MACD has flashed a positive crossover on the daily chart.

Immediate support is seen between 90.74 and 90.45, while resistance is placed in the 91.35 to 91.55 zone.

Jain added that the pair is holding above the 90 level and is expected to stay within the broader 89.85 to 92.00 range this week.