Rupee Hits Record Low Against Dollar: Here’s Why

The Indian rupee plunged to an all-time low against the US dollar on Wednesday, reflecting heightened global uncertainty and sustained foreign capital outflows. The currency opened at ₹91.05 and during intraday trading touched ₹91.74, before closing at ₹91.65, down 68 paise from the previous close. This marks the biggest single-day fall since 21 November 2025. The RBI reference rate for USD/INR was 91.5500, below the closing market level.

Factors Behind the Decline
According to Abhishek Bisen, Head of Fixed Income at Kotak Mahindra AMC, emerging economies like India are under pressure from volatile capital flows. Additionally, geopolitical tensions are affecting global markets. Recent developments such as the Greenland dispute and US control over Venezuela’s oil reserves have added to uncertainty, even straining US-Europe relations and raising concerns over NATO’s stability.

Bisen noted that for India, the pending US-India trade deal remains a key factor for stability, as its conclusion could boost both confidence and bilateral trade. Meanwhile, the US Dollar Index, which tracks the greenback against six major currencies, fell 0.02% to 98.61, reflecting a slightly weaker dollar.

Impact on Indian Markets
Domestic equities also mirrored global volatility. The BSE Sensex fell 270.84 points to 81,909.63, while the NSE Nifty 50 dropped 75 points to 25,157.50. The rupee has declined 1.50% so far this month, indicating continued pressure on the domestic currency amid global and domestic headwinds.