Why did the Indian rupee hit an all-time low on January 21, 2026?

The rupee hit an all-time low due to persistent foreign fund outflows and global risk aversion, exacerbated by geopolitical tensions.

What global events are impacting the Indian rupee and stock market?

Tensions in Europe over Greenland and potential tariffs are creating global uncertainty, leading to a risk-off sentiment.

How did the Indian stock market perform amid this downturn?

Domestic shares extended their selloff for a third day, with the Sensex and Nifty closing lower due to market uncertainty.

Home / Business and Economy / Rupee Plunges to Record Low Amid Global Turmoil

Rupee Plunges to Record Low Amid Global Turmoil

21 Jan

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Summary

Indian rupee hit an all-time low of 91.70 against the dollar.
Foreign fund outflow and global risk aversion pressured the rupee.
Geopolitical uncertainty, including tensions in Europe, impacted markets.

Rupee Plunges to Record Low Amid Global Turmoil

The Indian rupee reached a historic low of 91.70 against the American dollar on Wednesday, a significant drop attributed to ongoing foreign fund outflows and a prevailing risk-off sentiment in global financial markets. This marks a new all-time low, surpassing the previous record set on December 16, 2025. The local currency has experienced a notable depreciation of 1.50 percent so far this month.

Heightened geopolitical uncertainty is a primary driver of this currency decline. Growing tensions in Europe, specifically concerning the Greenland issue and the potential imposition of tariffs, have negatively impacted investor sentiment worldwide. This global unease has cascaded into domestic markets, with Indian equities extending a sharp selloff for the third consecutive trading day.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.