Mumbai: The rupee plummeted to a record intraday low of 92 against the US dollar on Friday, January 23, 2026, driven by aggressive foreign fund outflows and a shift toward risk aversion in global markets. Despite a brief recovery during the session, the currency settled at a record closing low of 91.90, marking a 32-paise decline from its previous close and capping its sharpest weekly slide in six months.
The trading day began with the rupee at 91.45, eventually reaching a high of 91.41 as it tracked a slight advance among Asian peers. However, these early gains were erased by persistent selling pressure from foreign institutional investors (FIIs), who offloaded equities worth Rs 4,113.38 crore on Friday alone. This capital flight coincided with a sharp downturn in domestic markets, where the Sensex tumbled 769.67 points to 81,537.70 and the Nifty fell 241.25 points to 25,048.65.
The currency’s performance this week reflects a broader trend of instability. The
rupee has declined by 202 paise, or over 2 per cent, during January 2026. This follow-up to a 5 per cent plunge in 2025 highlights continued
dollar strength and high demand from importers. On Friday, the dollar index stood at 98.36, while Brent crude rose 1.03 per cent to USD 64.72 per barrel, further straining the local unit.
“We expect the rupee to trade with a negative bias due to selling pressure from FIIs and risk-off sentiments in the global markets,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan. He noted that demand from hedgers and importers would
likely maintain pressure on the currency. Market experts observed that the rupee succumbed to high dollar demand from corporates ahead of the Union Budget and a long weekend. Dilip Parmar, Research Analyst at HDFC Securities, noted that “this fragility intensified as domestic equities faced a fresh bout of liquidation.” While the previous record low of 91.65 was set on January 21, the new floor of 92.00 represents a significant psychological shift for the market.
Despite the currency’s slide, India’s foreign exchange reserves rose by USD 14.167 billion to reach USD 701.36 billion for the week ended January 16. While the Reserve Bank of India (RBI) has intervened through spot market sales and buy/sell swaps to slow the decline, analysts like Kunal Kurani of Mecklai Financial Services suggest the pressure remains regardless of broader cues.
Looking ahead, the USD-INR spot price is projected to fluctuate within a range of 91.60 to 92.30.