- Rupee touched an all-time low of 91.74 against the dollar in intraday trade.
- Weak equities and foreign fund outflows weighed on sentiment.
- Geopolitical tensions and tariff worries added pressure.
The Indian rupee weakened sharply on Wednesday, sliding to a record low of 91.74 against the US dollar as selling pressure intensified on Dalal Street. The currency later closed at 91.70, down 72 paise from the previous session, after opening weaker at around 91.05.
Market participants pointed to sustained foreign fund outflows, strong dollar demand from importers and a broad selloff in domestic equities as key factors dragging the rupee lower. The previous intraday low was recorded on December 16, 2025, when the currency touched 91.14.
Global nerves, local pressure
Traders said global uncertainty added to the pressure. Heightened tensions in Europe linked to Greenland and fresh concerns around potential tariffs reportedly unsettled investors, while volatility in currency markets continued to cloud risk appetite.
Sachin Sawrikar, founder and managing partner at Artha Bharat Investment Managers, reportedly said that sharp currency swings can hurt foreign investment returns when converted back into overseas currencies. He added that elevated hedging costs and sudden capital movements pose challenges for both long-term and short-term investors, according to a news report.
Meanwhile, the dollar index, which tracks the greenback against six major currencies, was marginally lower at 98.61, while Brent crude fell nearly 2 per cent to about $63.70 a barrel in futures trade.
Equities and flows
The fall in the rupee came alongside losses in the equity market. The Sensex was down nearly 290 points at around 81,890, while the Nifty slipped below 25,200.
Foreign institutional investors sold shares worth about ₹2,938 crore in the previous session, exchange data showed, extending the pressure on both equities and the currency.
Other market watchers also linked the rupee’s slide to geopolitical uncertainty and delayed trade discussions with the US. Akshat Garg, head of research and product at Choice Wealth, reportedly said the move appeared driven more by global risk aversion and sustained dollar demand than by a single domestic trigger. He added that while exporters may gain from a weaker currency, higher import costs could gradually filter through to households and businesses.
Analysts said attention will now remain on global developments, capital flows and any central bank action aimed at smoothing volatility, as the rupee trades near uncharted territory.
