Rupee settles near all-time low at 91.96 against U.S. dollar

Forex traders said the rupee hit its all-time intra-day low of 92 against the U.S. dollar amid geopolitical uncertainty and foreign outflows. Moreover, a surge in crude oil prices weighed on the rupee.

At the interbank foreign exchange, the rupee opened at 91.95 and touched an early high of 91.82, but pared gains to touch an intra-day low of 92 against the greenback.

The domestic unit settled at 91.96 (provisional), up 3 paise from its previous close.

On Wednesday (January 28, 2026), the rupee settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback. On January 23, the rupee hit an all-time intra-day low of 92 against the U.S. dollar.

Finance Minister Nirmala Sitharaman tabled the economic survey, flagging concerns over risks from the external sector and foreign outflows.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07% lower at 96.37.

Brent crude, the global oil benchmark, was trading 1.83% lower at $69.64 per barrel in futures trade.

“Persistent dollar strength, elevated U.S. bond yields, and continued foreign portfolio outflows have collectively kept emerging market currencies under stress, with the rupee being no exception,” Akshat Garg, Head, Research & Product of Choice Wealth, said.

Mr. Garg further noted that month-end importer demand and precautionary hedging have further accentuated the move. While the RBI has the ammunition to smooth excessive volatility, it is unlikely to defend any specific level aggressively in the absence of disorderly market conditions.

“From a medium-term perspective, India’s fundamentals remain relatively resilient, supported by stable growth and manageable inflation. However, near-term currency direction will continue to be guided by global cues — particularly the U.S. rate trajectory, capital flow trends and geopolitical developments.”

“Investors should view the current depreciation more as a phase of global realignment rather than a structural deterioration in India’s economic outlook,” Mr. Garg added.

On the domestic equity market front, Sensex climbed 221.69 points to settle at 82,566.37, while the Nifty was up 76.15 points to 25,418.90.

Foreign institutional investors purchased equities worth ₹480.26 crore on Wednesday (January 28, 2026), according to exchange data.

According to the Economic Survey, the rupee’s value, which has slipped to 92 per dollar, does not accurately reflect India’s stellar economic fundamentals.

“In other words, the rupee, therefore, is punching below its weight,” it said, adding that investor reluctance to commit funds to India warrants examination at a time when inflation is under control and the growth outlook is favourable.

India depends on foreign capital flows to maintain a healthy balance of payments.