Rupee breaches 91/$-mark: INR sinks as FPIs sell ₹29,300 crore in 2026

Rupee breaches 91/$-mark

The Indian rupee breached the psychologically significant level of 91-per-dollar mark on Tuesday, January 20, 2026. The domestic currency opened 2 paise lower at 90.93 per US dollar, compared to Monday’s close of 90.90/$-mark.

 

The rupee, however, extended its weakness to hit an intraday low of 91.01/$, weighed down by a relentless selling by foreign investors and a resurgence of global trade tensions.

 

On Monday, the rupee depreciated by 12 paise to close at 90.90 against the greenback, a tad above its record low closing level. Earlier, on December 16, 2025, the rupee reached its lowest intraday level of 91.14 and its lowest closing level of 90.93 against the US dollar.

 

According to forex market watchers, the current depreciation of rupee is being fuelled by a "perfect storm" of domestic and international factors.

 

Renewed threats of tariffs by US President Donald Trump -- specifically targeting European nations over a dispute regarding Greenland -- have triggered a global "risk-off" sentiment.

 

"The US Supreme Court will be giving a decision on the legality of the Trump Tariffs, which will affect the world markets directly. Presently, all the markets are in risk-off mode with Gold and Silver getting bought as safe havens," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

 

That apart, the US labor market has been steady over the past few months, bolstering the dollar index, as markets now anticipate that the Federal Reserve will keep interest rates higher for longer.

 

According to the data released by the US' Bureau of Labor Statistics, the US economy added an estimated 50,000 jobs in December 2025, slowing from 56,000 jobs added in November.

 

Yet, the unemployment rate edged lower to 4.4 per cent from a revised 4.5 per cent in November. 

ALSO READ | Why growth isn't saving the rupee despite low inflation, modest CAD 

The FPI exodus

Back home, the most immediate pressure on the rupee is coming from a sustained selling of Indian equities by foreign portfolio investors. FPIs have been net sellers in the Indian market for months. So far in 2026, FPIs have offloaded equities worth over ₹29,315 crore (approximately $3 billion). This aggressive selling has turned the rupee into one of the weakest major currencies in Asia, as investors pivot toward safe-haven assets like gold and US Treasuries.

 

"he ongoing global uncertainty, combined with a sustained break above 91.07, could pave the way for a move toward the 91.7092.00 zone, unless offset by active intervention from the Reserve Bank of India (RBI). On the downside, any corrective move is likely to find initial support in the 90.3090.50 range," said Amit Pabari, managing director, CR Forex Advisors.

 

Rupee extends 2025's decline

The rupee's decline today is an extension of a bruising 2025. Last year, the currency fell by approximately 6 per cent, eventually breaching the ₹90 mark for the first time in December 2025. That year saw a record FPI outflow of ₹1.66 trillion, the largest in recent history.

 

So far in 2026, the rupee has already depreciated by nearly 1.1 per cent in just the first twenty days of January. While the Reserve Bank of India (RBI) has intermittently intervened to curb extreme volatility, the central bank appears to be allowing the market to find its own level amid these structural global shifts.

    (With inputs from Agencies)