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The rupee rebounded from its all-time low levels and gained 15 paise to trade at 91.50 against the U.S. dollar in early deals on Thursday (January 22, 2026), on improved risk appetite after U.S. President Donald Trump said that he had no intention of applying tariffs on Europe for Greenland acquisition.
Forex traders said investors’ sentiments improved after President Trump announced in Davos on Wednesday (January 21, 2026) that he was scrapping his planned tariffs on eight European nations in an effort to force U.S. control over Greenland.
Moreover, a positive trend in domestic equities also helped in the rebound of the domestic unit.
At the interbank foreign exchange, the rupee opened at 91.54 then gained ground to trade at 91.50 against the greenback, up 15 paise from its previous close.
On Wednesday (January 21, 2026), the rupee plunged 68 paise to close at an all-time low of 91.65 against the dollar.
Forex traders, however, said the currency remains under severe pressure from heightening global geopolitical uncertainties.
The pending trade agreement with the U.S. remains a key stabilising factor. Until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks, they said.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, Asian equities are up giving some relief and rupee witnessed a rebound after Mr. Trump’s speech in Davos in which he avoided confrontation with European Nations to some extent and also said that a framework has been reached on Greenland.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 98.78.
Brent crude, the global oil benchmark, was trading 0.17% higher at $65.35 per barrel in futures trade.
On the domestic equity market front, Sensex advanced 533.37 points to 82,443 in early trade, while the Nifty was up 157.20 points to 25,314.70.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,787.66 crore on Wednesday (January 21, 2026), according to exchange data.
Published – January 22, 2026 10:28 am IST
