Rupee breaches 91 mark for first time in 2026; FII outflows, global trade jitters weigh
Selling pressure remained elevated throughout the trading day. As of the last check at 2 pm, the currency was hovering at 90.96, struggling to recover lost ground.
- Jan 20, 2026,
- Updated Jan 20, 2026 2:34 PM IST
The Indian rupee continued its fall spiral on Tuesday, breaching the critical 91 per dollar mark for the first time this year, weighed down by sustained selling by foreign investors and renewed global trade tensions.
The domestic currency has now witnessed a decline for four consecutive sessions through Monday.
After a previous close of 90.85, it slipped to a fresh low of Rs 91.05, falling 20 paise against the previous close. This level recalls significant volatility from late last year, as the rupee had breached the 91 mark for the first time on December 12, 2025.
Selling pressure remained elevated throughout the trading day. As of the last check at 2 pm, the currency was hovering at 90.96, struggling to recover lost ground. The relentless exodus of foreign capital continues to weigh heavily on the domestic unit. Foreign Portfolio Investors (FPIs) have remained consistent net sellers, the selling spree has intensified since the start of the year, with investors pulling out over Rs 29,300 crore so far in 2026. Global sentiment dampened following renewed tariff threats by US President Donald Trump. His administration's hardening stance, particularly against European nations regarding the ongoing Greenland dispute, has reignited trade tensions and triggered a risk-off mode across financial markets.
“The continued global uncertainties, including US pressure on Greenland, have led to a risk-off sentiment in markets. This has led to strong demand for precious metals, with gold and silver prices touching an all-time high. The risk-off sentiment, along with strong offshore hedging in USDINR, has led to USDINR touching 91 per dollar. The current macro environment is likely to maintain depreciating pressure on the INR,” said Sameer Karyatt, Executive Director and Head of Trading at DBS Bank India.
“While the rupee’s depreciation toward the 90.95–91.00 zone is keeping near-term pressure elevated. However, sustained currency weakness could eventually turn supportive for FII inflows if valuations become more attractive through 2026,” said Ponmudi R, CEO of Enrich Money.
The Indian rupee continued its fall spiral on Tuesday, breaching the critical 91 per dollar mark for the first time this year, weighed down by sustained selling by foreign investors and renewed global trade tensions.
The domestic currency has now witnessed a decline for four consecutive sessions through Monday.
After a previous close of 90.85, it slipped to a fresh low of Rs 91.05, falling 20 paise against the previous close. This level recalls significant volatility from late last year, as the rupee had breached the 91 mark for the first time on December 12, 2025.
Selling pressure remained elevated throughout the trading day. As of the last check at 2 pm, the currency was hovering at 90.96, struggling to recover lost ground. The relentless exodus of foreign capital continues to weigh heavily on the domestic unit. Foreign Portfolio Investors (FPIs) have remained consistent net sellers, the selling spree has intensified since the start of the year, with investors pulling out over Rs 29,300 crore so far in 2026. Global sentiment dampened following renewed tariff threats by US President Donald Trump. His administration's hardening stance, particularly against European nations regarding the ongoing Greenland dispute, has reignited trade tensions and triggered a risk-off mode across financial markets.
“The continued global uncertainties, including US pressure on Greenland, have led to a risk-off sentiment in markets. This has led to strong demand for precious metals, with gold and silver prices touching an all-time high. The risk-off sentiment, along with strong offshore hedging in USDINR, has led to USDINR touching 91 per dollar. The current macro environment is likely to maintain depreciating pressure on the INR,” said Sameer Karyatt, Executive Director and Head of Trading at DBS Bank India.
“While the rupee’s depreciation toward the 90.95–91.00 zone is keeping near-term pressure elevated. However, sustained currency weakness could eventually turn supportive for FII inflows if valuations become more attractive through 2026,” said Ponmudi R, CEO of Enrich Money.