The Indian rupee slipped to a record low, breaching the 91 mark against the US dollar in early trade on 21 January 2026. Opening at 91.05, the currency weakened further to 91.58 intraday, pressured by foreign fund outflows, rising geopolitical tensions, and cautious global markets.
The fall was driven by geopolitical tensions, including the Greenland dispute, and concerns over possible US tariffs, according to forex traders.
Global Markets Turn Weak
Global stock markets saw sharp losses, with the US S&P 500 and Nasdaq posting their worst single-day falls since October. Fresh US tariff threats and geopolitical issues have made investors cautious, leading them to pull money out of riskier markets like India.
Rupee’s Performance Remains Poor
The rupee has fallen over 1% in January 2026 and 6.5% in the current financial year, making it the worst-performing currency in Asia during this period. Ongoing foreign outflows and global tensions continue to hurt the currency.
RBI Steps In, But Pressure Remains
On 20 January 2026, the rupee crossed the 91 mark for the first time this year, ending the day at 90.98 after touching 91.06. The Reserve Bank of India sold dollars to support the rupee, which helped limit losses. However, experts say the rupee still faces downside risks.
According to Alok Singh, Treasury Head at CSB Bank, RBI support may keep the rupee stable near 91, but rising global tensions could push it towards 92.
Gold Prices Hit Record High
As uncertainty increased, investors moved towards safe assets. Gold prices in India jumped to a record, with futures reaching ₹1,58,339 per 10 grams. A weaker rupee has made gold imports more expensive, pushing prices higher.
However, with global risks still high and foreign investors continuing to sell, the rupee may remain volatile in the near term. Market sentiment will depend on global developments and investor confidence.