Indian rupee falls to new record low against dollar
TL;DR
The Indian rupee hit a record low of 92.00 against the US dollar on January 29, 2026, driven by foreign fund outflows, high oil prices, and geopolitical tensions. It has depreciated over 2% in January and 5% in 2025, with domestic equity markets also falling. Analysts see continued vulnerability but potential support from RBI interventions and a weaker dollar.
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The Indian rupee fell to a record low of 92.00 against the US dollar in intraday trade on January 29, 2026, driven by persistent foreign fund outflows, elevated crude oil prices, and geopolitical tensions according to market reports. The currency opened at 91.95 and briefly touched 92.00 before settling at 91.79, down 11 paise from the previous day's close as reported. This marked a continuation of its downward trend, having depreciated over 2% in January alone and more than 5% in 2025 according to financial data.
Key factors contributing to the decline included sustained selling pressure from foreign institutional investors (FIIs), who offloaded equities worth Rs 2,549.80 crore on January 28 according to reports, and rising US treasury yields, which strengthened the dollar globally. Geopolitical risks, such as heightened US-Iran tensions, also exacerbated risk-off sentiment, pressuring emerging market currencies as noted. Meanwhile, Brent crude climbed to $69.30 per barrel, increasing import costs for oil-dependent India according to market analysis.
Domestic equity markets mirrored the rupee's weakness, with the Sensex and Nifty indices falling 343.67 and 94.2 points, respectively, on January 29 according to data. Analysts noted that the rupee's trajectory remains vulnerable to continued FII outflows and dollar demand from importers and hedgers as reported. However, potential RBI interventions and a weaker dollar in the medium term could provide limited support, with USD-INR projected to trade between 91.60 and 92.30 according to market projections. The Reserve Bank of India has previously intervened to stabilize the currency, though its balancing act between market flexibility and stability remains challenging as documented.
