There is still pressure on the Indian rupee. It dropped 68 paise against the US dollar on Wednesday, reaching an all-time low of 91.65. The native currency has declined due to inflows of foreign capital and geopolitical unpredictability.
💵 INR Record Low & Capital Outflows
- Current Rate: 91.65 per USD (all-time low)
- Drop Since Dec 2025: 1.50%
- Main Causes: Foreign capital outflows, geopolitical tensions
- Market Reaction: Investor risk aversion increased
🌍 Geopolitics & Dollar Strength
- Global Risks: Greenland dispute, Venezuela oil tensions
- US Dollar Index: Fell 0.02% to 98.61
- Impact on India: Weaker rupee, foreign investor caution
- Stabilizing Factor: Pending US–India trade agreement
Rupee Decline Overview
Since December 2025, the rupee has dropped 1.50%, a sign of greater risk appetite and market nervousness. He noted that investors are becoming more wary as a result of growing tensions with Europe over the Greenland issue and possible tariffs. Additionally, unfavorable developments in the local market have made investors less optimistic.
Interbank Market Movements
The interbank foreign exchange market saw the rupee open at 91.05 to the dollar. It eventually closed at an all-time low of 91.65 per dollar, down 68 paise from its previous closing, after falling further during the day to a low of 91.74.
On Tuesday, the rupee fell seven paise to close at a record low of 90.97 versus the US dollar. According to Kotak Mahindra AMC’s head of fixed income, Abhishek Bisen, unstable capital flows are putting pressure on developing nations like India.
Geopolitical Factors
Additionally, he noted, geopolitical concerns are affecting international trade. The US dominance over Venezuela’s oil riches and the Greenland conflict are two examples of global tensions. NATO may disintegrate as a result of the Greenland conflict, which has strained ties between the US and Europe. According to Bisen, the impending trade agreement with the US continues to be a crucial stabilizing element for India because its completion might increase bilateral trade and trust.
Market Indicators
In the meantime, the dollar index, which measures how strong the US dollar is relative to a basket of six currencies, fell 0.02 percent to 98.61. Regarding the domestic equities market, the Nifty dropped 75 points to settle at 25,157.50 while the Sensex dropped 270.84 points to close at 81,909.63.
International benchmark Brent crude dropped 1.88 percent to $63.70 per barrel. Foreign institutional investors (FIIs) were net sellers in the market on Wednesday, selling shares valued at Rs 1,787.66 crore, according to stock market data.
Frequently Asked Questions
1. What was the rupee’s most recent closing value?
In relation to the US dollar, the rupee recently ended at an all-time low between ₹91.65 and ₹91.70.
2. Are internal factors the only cause of the rupee’s decline?
No, global reasons like foreign outflows and geopolitical uncertainty are the primary drivers, even though domestic equity downturn is important.
3. Is the Reserve Bank of India (RBI) taking action?
Indeed, the RBI has occasionally interfered to reduce volatility by providing dollars, but this action has been little and has not completely stopped the trend.
4. What impact does this have on regular Indians?
A depreciating rupee can increase the cost of petrol, imported products, travel, and international education. A weakened currency, however, might be advantageous to exporters.
5. Will the rupee continue to depreciate?
According to analysts, the rupee may test levels above ₹92 per dollar if capital outflows persist and geopolitical tensions increase. However, future changes in the market and in legislation will determine this.
Conclusion
Strong dollar demand, sluggish domestic markets, international capital outflows, and geopolitical concerns all contribute to the Indian rupee’s all-time low. Although short-term volatility may continue, India’s long-term economic fundamentals continue to provide support.
Disclaimer
The content on this website is for informational purposes only and does not constitute financial, legal, or professional advice. Readers should verify facts independently before making decisions.
