The Indian rupee weakened further on Tuesday, January 20, moving closer to its record low level of 91.08 against the US dollar, as sustained dollar demand and continued foreign fund outflows pressured the domestic currency.
In early trade, the rupee depreciated by 8 paise to 90.98, weighed down by strong dollar buying from metal importers and persistent selling by foreign investors. Forex traders said that heightened geopolitical uncertainty and renewed expansionary signals from the US have increased global risk aversion, keeping emerging market currencies under pressure.
The rupee opened at 90.91 at the interbank foreign exchange and gradually lost ground to trade at 90.98 against the greenback, compared with its previous close. Weakness in domestic equities has further added to the pressure, with foreign capital continuing to exit Indian markets.
On Monday, the rupee had already fallen 12 paise to close at 90.90, hovering near its record low closing level of 90.93. The domestic currency had earlier touched its lowest-ever intra-day level of 91.14 on December 16, 2025.
Market participants noted that unless global risk sentiment improves or foreign flows stabilise, the rupee could continue to remain volatile near record low levels in the near term.
