The rupee crashed 77 paise to an all-time low of 91.74 against the American currency in intra-day trade on Wednesday (January 21, 2026), pressured by persistent foreign fund outflow and robust greenback demand from metal importers.

Forex traders said heightened tensions in Europe over the Greenland issue and potential tariffs, along with a negative trend in the domestic market, further dented investor sentiment.

At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to trade at an all-time low of 91.74 against the greenback, down 77 paise from its previous close.

On Tuesday (January 20, 2026), the rupee depreciated 7 paise to close at 90.97 against the U.S. dollar.

The previous intra-day low was recorded on December 16, 2025, when the rupee touched 91.14.

“Currency volatility continues to hinder foreign investment into India, particularly for global investors assessing risk-adjusted returns.

“While India’s long-term growth prospects remain robust, abrupt currency fluctuations significantly erode returns when repatriated to foreign currencies, diminishing India’s competitiveness against other emerging markets,” said Sachin Sawrikar, founder and managing partner, Artha Bharat Investment Managers.

Mr. Sawrikar further noted that “long-term investors face compressed yields from elevated hedging costs, while short-term investors encounter heightened risks of sudden capital flight.” Mitigating currency volatility and sustaining policy credibility are therefore essential to maintaining investor confidence during periods of global uncertainty, he noted.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.02% lower at 98.61.

Brent crude, the global oil benchmark, was trading 1.88% lower at $63.70 per barrel in futures trade.

On the domestic equity market front, Sensex was trading 289.85 points lower at 81,890.62, while Nifty declined 77.40 points to 25,155.10.

Foreign institutional investors offloaded equities worth ₹2,938.33 crore on Tuesday (January 20, 2026), according to exchange data.