Why did the Indian rupee hit a record low on January 20, 2026?

The rupee hit a record low due to strong dollar demand from metal importers and persistent foreign fund outflows, exacerbated by geopolitical uncertainties.

What is the current status of the Indian Rupee against the US Dollar?

As of Tuesday, January 20, 2026, the Indian rupee closed at a provisional record low of 90.97 against the US dollar.

What are the future expectations for the USD-INR spot price?

USD-INR spot price is expected to trade in a range of 90.70 to 91.25, with a potential negative bias due to outflows and global risks.

Home / Business and Economy / Rupee Hits Record Low: Dollar Demand, Fund Outflows Bite

Rupee Hits Record Low: Dollar Demand, Fund Outflows Bite

20 Jan

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Summary

Rupee hit a record low of 90.97 against the US dollar on Tuesday.
Strong dollar demand from metal importers and foreign fund outflows pressured the rupee.
Geopolitical uncertainties and a weak domestic stock market contributed to the decline.

Rupee Hits Record Low: Dollar Demand, Fund Outflows Bite

The Indian rupee experienced a significant decline, closing at a provisional record low of 90.97 against the US dollar on Tuesday. This depreciation of 7 paise was primarily driven by robust demand for dollars from metal importers and continuous outflows of foreign funds, which collectively weakened investor confidence.

Forex traders indicated that escalating geopolitical uncertainties, coupled with signals of renewed US expansionary policies, have amplified global risk aversion. This trend has put emerging market currencies, including the rupee, under considerable pressure. A sluggish domestic stock market, exacerbated by substantial foreign capital exodus, further weighed on the local currency.