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.

The rupee tumbled for the third straight session and lost 50 paise to settle near its lowest level at 90.84 (provisional) against the U.S. dollar on Friday (January 16, 2026), amid rising crude oil prices and sustained outflow of foreign funds.

Volatile global sentiment and a firm American currency accelerated the withdrawal of foreign institutional investors, even as domestic investors resorted to value buying, forex traders said.

According to traders rupee faced pressure after data released on Thursday (January 15, 2026) showed India’s trade deficit widened slightly to $25.04 billion in December 2025, compared to $24.53 billion in November and $22 billion in December 2024.

At the interbank foreign exchange, the rupee opened at 90.37 and touched an intraday low of 90.89, a tad above its lowest-ever closing level. It ended the session at 90.84 (provisional) against the greenback, down 50 paise from Wednesday’s (January 14, 2026) close.

The rupee declined by 11 paise to close at 90.34 against the U.S. dollar on Wednesday (January 14, 2026), after falling 6 paise on Tuesday (January 13, 2026).

The domestic foreign exchange market was closed on Thursday (January 15, 2026) due to the Mumbai municipal corporation elections.

The Indian currency recorded its lowest closing level of 90.93 on December 16, when it also saw its lifetime low of 91.14 in intraday trade.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee fell for the third consecutive session amid persistent foreign fund outflows and a strong dollar overnight.

He said the dollar strengthened after better-than-expected U.S. unemployment claims and manufacturing data.

“We expect the rupee to trade with a negative bias on uncertainty over trade deal talks and geopolitical tensions. A strong dollar, FII outflows from capital markets and elevated crude oil prices may pressurise the rupee,” Mr. Choudhary said and projected the USD-INR spot price to trade “in a range of 90.50 to 91.25”.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 99.26.

Brent crude, the global oil benchmark, was trading 1.14% higher at $64.49 per barrel in futures trade.

On the domestic equity market front, the Sensex climbed 187.64 points to settle at 83,570.35, while the Nifty rose 28.75 points to 25,694.35.

Foreign institutional investors offloaded equities worth ₹4,781.24 crore on Wednesday (January 14, 2026), according to exchange data.

The rupee pared initial gains and settled for the day 6 paise lower at 90.29 (provisional) against the U.S. dollar on Wednesday (January 14, 2026), as the likely central bank intervention was negated by a strong dollar, foreign outflows from capital markets and elevated crude oil prices.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and geopolitical tensions, however, rising odds of a rate cut amid softening inflation and any intervention by the central bank may support the rupee at lower levels.

At the interbank foreign exchange, the rupee opened at 90.26 and touched the intra-day low of 90.30 and a high of 89.94 against the dollar. The currency finally ended the session at 90.29 (provisional) against the dollar, down 6 paise from its previous close.

On Tuesday (January 13, 2026), the rupee declined 6 paise to close at 90.23 against the U.S. dollar.

“Indian rupee gained in early trade on likely central bank intervention. However, a strong dollar, FII outflows and a late fall in the domestic markets capped sharp gains,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Mr. Choudhary further added that “we expect the rupee to trade with negative bias on risk aversion in global markets and geopolitical tensions”.

Traders now focus on the U.S. Supreme Court ruling later in the day on the legality of the Liberation Day tariffs. USD/INR spot price is expected to trade in a range of 89.95 to 90.50, he said.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.02% lower at 99.11.

Brent crude, the global oil benchmark, was trading 1.04% lower at $64.81 per barrel in futures trade.

On the domestic equity market front, the Sensex dropped 244.98 points to settle at 83,382.71, while the Nifty declined 66.70 points to 25,665.60.

Foreign institutional investors offloaded equities worth ₹1,499.81 crore on Tuesday (January 13, 2026), according to exchange data.