Rupee Hits Record Low as Global Turmoil and RBI Absence Deepen Fall

The Indian rupee tumbled to a record low on Wednesday, marking its sharpest single-day fall in nearly two months, as global market volatility and rising risk aversion triggered sustained pressure on emerging market currencies. The rupee weakened for the sixth consecutive session, touching an all-time low of 91.7425 against the U.S. dollar before closing 0.8% lower at 91.6950.

Traders said the decline was aggravated by the Reserve Bank of India’s absence from the foreign exchange market, with no visible dollar supply to curb the slide. Ongoing equity outflows, combined with importers stepping up hedging amid expectations of further depreciation, have left the rupee vulnerable despite India’s manageable current-account deficit.

Indian equities also remained under pressure, with foreign investors pulling out around $3 billion so far in January, following record outflows in 2025. Analysts warned that continued global risk-off sentiment, weak capital inflows, and delays in a potential U.S.-India trade deal could keep the rupee under stress, with markets now watching for possible RBI intervention if volatility intensifies.

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