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The rupee depreciated 31 paise to an all-time low of 91.28 against the American currency in early trade on Wednesday (January 21, 2026), weighed down by steady dollar demand and a cautious global mood.
Forex traders said rising geopolitical uncertainty, including renewed U.S. expansionary signals, has increased risk aversion and kept emerging market currencies under pressure.
Moreover, a sluggish domestic stock market triggered by an exodus of foreign capital dented investors’ sentiment further, they said.
At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to trade at 91.28 against the greenback, down 31 paise from its previous close.
On Tuesday (January 20, 2026), the rupee depreciated 7 paise to close at a record low of 90.97 against the U.S. dollar.
“Markets were already uneasy when U.S. President Donald Trump revived trade war rhetoric and renewed his push for Greenland. U.S. Treasury yields jumped to four-month highs, while the dollar slipped for a second day— a sign that investors are questioning not just risk, but direction,” CR Forex Advisors MD – Amit Pabari said.
Mr. Pabari further noted that “persistent global unease, coupled with a sustained break above 91.07, could gradually open the door toward the 91.70–92.00 zone, unless restrained by active intervention from the RBI.
“On the downside, any corrective pullback is likely to find its first line of support in the 90.30–90.50 range.” On December 16, 2025, the rupee reached its previous lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 98.59.
Brent crude, the global oil benchmark, was trading 1.11% lower at $64.20 per barrel in futures trade.
On the domestic equity market front, Sensex dropped 385.82 points to 81,794.65 in opening trade, while Nifty declined 91.5 points to 25,141.
Foreign institutional investors offloaded equities worth ₹2,938.33 crore on Tuesday (January 20, 2026), according to exchange data.
Published – January 21, 2026 10:43 am IST
