Rupee returns to red! Currency falls to 92 per US Dollar

Rupee continued its fall on Thursday, sliding to 92 mark against the US dollar. The currency has been in constant pressue due to persistent demand for the greenback and a cautious global market.

According to currency dealers, the domestic unit was dragged down after the dollar index rebounded from multi-year lows, following the US Federal Reserve’s decision to keep interest rates unchanged at the conclusion of its first policy meeting of 2026. Heightened geopolitical tensions have also pushed investors towards safe-haven assets, weighing on emerging market currencies.




In early interbank trade, the rupee opened marginally weaker at 91.95 and soon touched 92.00 against the dollar, slipping 1 paisa from its previous close. This comes after the currency ended Wednesday’s session sharply lower, falling 31 paise to 91.99, its weakest closing level on record.

The rupee had earlier hit its lowest-ever intraday level of 92.00 on January 23.

According to Akshat Garg, head of research & Product of Choice Wealth, "rupee opening at a record low of Rs 91.99 against the US dollar reflects mounting external pressures rather than any domestic macro weakness. Persistent dollar strength, elevated US bond yields and continued foreign portfolio outflows have collectively kept emerging market currencies under stress, with the rupee being no exception."

The expert further added that the dip was further accentuated by "month-end importer demand and precautionary hedging. While the RBI has the ammunition to smooth excessive volatility, it is unlikely to defend any specific level aggressively in the absence of disorderly market conditions. From a medium-term perspective, India’s fundamentals remain relatively resilient, supported by stable growth and manageable inflation. However, near-term currency direction will continue to be guided by global cues — particularly the US rate trajectory, capital flow trends and geopolitical developments. Investors should view the current depreciation more as a phase of global realignment rather than a structural deterioration in India’s economic outlook."

Oil prices have climbed over 4% this week, extending gains for a third straight session to levels last seen in late September. At the same time, the dollar index, which tracks the US currency against six major peers, was trading 0.29% lower at 96.16. Brent crude futures were up 1.32% at $69.30 per barrel.

Pabari said the 92.00 level remains a crucial near-term zone for the USD/INR pair in the non-deliverable forward market. A sustained break above this level could push the pair towards 92.20–92.50, although intervention by the Reserve Bank of India and a softer global dollar could limit further depreciation and help the rupee move back towards the 91.00–91.20 range.

Domestic equities also opened lower, reflecting cautious sentiment. The BSE Sensex slipped almost 560 points, while the NSE Nifty was trading below 25,200.

Data showed foreign institutional investors remained net buyers, purchasing equities worth Rs 480.26 crore on Wednesday.

On the macroeconomic front, the country's industrial output posted its strongest growth in over two years, rising 7.8% in December 2025, supported by robust performance in the manufacturing, mining and power sectors. In comparison, the Index of Industrial Production had grown 3.7% in December 2024.