The Indian rupee hit a record low of 92 against the US dollar on Friday, January 23, 2026. However, it recovered to close the day at 91.88. Later, the rupee recovered slightly to 91.41 as geopolitical concerns eased.

How low did the rupee fall?

The Indian rupee, which at one point hit an unprecedented low of 92 against the dollar, closed the day at 91.88, making it Asia’s worst-performing currency this week.

What is the main reason for the fall of the rupee?

Foreign portfolio investors (FPIs) withdrew ₹36,500 crore from Indian equities in the first 22 days of January. This followed withdrawals of $18.91 billion in 2025. This led to continued demand for the dollar, putting pressure on the rupee.

What was the impact of the international market?

In international markets, risk aversion persisted due to trade tensions, geopolitical uncertainties, stalled India-US trade talks, and President Trump’s US tariff policies. All these factors contributed to the rupee’s decline.

Why did the rupee improve?

The rupee strengthened by 17 paise to 91.41 after US President Trump softened his stance on tariff threats against Europe, boosting investor risk appetite and allowing emerging market currencies to recover slightly.