Indian Rupee Hits Record Lows Amid Foreign Outflows and Global Geopolitical Tensions

The Indian rupee hit multiple record lows against the US dollar in January 2026, falling past the 91 mark amid persistent foreign fund outflows, strong dollar demand from importers, and heightened global geopolitical tensions, notably related to US-Europe trade disputes and the Greenland issue. Despite interventions by the Reserve Bank of India to curb volatility, risk aversion and sluggish domestic equity markets continued to pressure the currency. Analysts highlight that capital outflows and importers' hedging activities are key factors driving the rupee's depreciation, with uncertainty over trade deals and global market conditions sustaining downward momentum.