Rupee Hits Historic Low at ₹92: Global Pressures Drive Decline

The Indian rupee has slipped to a lifetime low of ₹92 against the US dollar, driven by foreign portfolio outflows, global market stress, and limited RBI intervention. Analysts note that while India’s macro fundamentals remain stable, persistent selling and cautious central bank action have kept the currency under pressure. A turnaround may depend on external factors like the pending US-India trade deal.

Jan 30, 2026 0 43

Rupee Hits Historic Low at ₹92: Global Pressures Drive Decline

Why the Rupee is Falling

Dr. V K Vijayakumar of Geojit Investments explained that the rupee has historically depreciated due to trade and current account deficits, averaging a 4% annual decline. What’s unusual now is that the rupee is weakening even as the dollar softens against other currencies.

Foreign Outflows & Exporter Behavior

Foreign portfolio investors pulled out over ₹18 billion last year, and the trend continues in 2026. Exporters are delaying dollar inflows, anticipating further rupee weakness, which adds to the downward pressure.

Market Sentiment

Akshat Garg of Choice Wealth described the record-low opening as a reflection of persistent dollar strength, high US bond yields, and ongoing foreign selling. He emphasized that India’s fundamentals remain strong, with stable growth and manageable inflation, framing the rupee’s slide as part of a global realignment rather than domestic weakness.

📊 What’s Next for the Rupee

Without RBI intervention, the rupee may hover near current levels.
A potential US-India trade deal could strengthen the currency, possibly pushing it below ₹90.
The RBI is expected to manage volatility but avoid defending specific levels unless markets become disorderly.

🌐 Bigger Picture

The rupee’s record low highlights the impact of global churn, steady foreign outflows, and cautious central bank strategy. Analysts argue that India’s economic outlook remains intact, but external pressures are reshaping currency dynamics.