Rupee crashes 76 paise to settle at record low of 91.73 against U.S. dollar

The Indian rupee had a drop it fell by about ₹0.76 and ended at a new all-time low of ₹91.73 for every USD. This happened because people are getting worried about the economy and they are taking their money out of India. At the time companies that import things like metals and energy need a lot of dollars so they are buying them. This is making the Indian rupee weaker. Some Indian companies and traders are also trying to protect themselves from losses. The Indian stock market is not doing well. There are worries about what is happening in the world like the problems, with Greenland all of this is making people want to sell the Indian rupee.

1) So what really went on with the market I mean the events that took place and the facts, about what happened in the market.

The rupee started the day lower against the dollar. It went down a lot during the day. Even crossed the 91 rupee per dollar mark. The rupee touched its point of the day at around 91.73 to 91.74 rupees per dollar. At the end of the day the rupee officially closed at a record low of 91.73 rupees per dollar. This is a drop of about 76 to 77 paise, from the day before. Many news agencies reported what the rupee did during the day and what it closed at.

People who buy and sell in the market think the big change in one day happened because of a things. These things are:

* importers of energy and metals needed dollars again

* foreign investors kept selling stocks and bonds

* people around the world were being careful because of new news, about countries and their problems, which made them want to buy dollars as a safe choice

* traders were also buying and selling dollars to protect themselves or to make a profit and this made the change happen even more. The Market participants think the Market participants saw these things happening and that is why the Market participants made these changes to the dollars. The dollars were affected by the Market participants and the things that the Market participants do.

2) What made the rupee fall so sharply? The Indian rupee had a drop and the people who understand money said the Indian rupee fell because of some main reasons. They explained that the Indian rupee fell sharply.

A. Global risk aversion / geopolitical shock

Currencies of emerging markets get really nervous when there is a jump in global political or geopolitical risk. Now people who watch the markets are talking about the problems in Europe specifically the “Greenland” issue that is all over the news. This is a deal because it is making people worry about tariffs and trade problems. When people get unsure about what’s going on they take their money out of emerging markets and put it into safe things, like U.S. Treasury securities and the dollar. This makes the currencies of emerging markets go down. Emerging markets currencies are really feeling the pain when this happens. Reuters and other news outlets said that these big stories about countries and their relationships with each other were a reason, for the selling pressure. They pointed to these headlines as something that made people want to sell.

B. Persistent foreign portfolio outflows (equities + bonds)

Foreign Portfolio Investors have been selling Indian stocks and debt than they have been buying lately. When this happens for a time it means less money is coming into the country and that puts pressure on the value of the rupee. This is because there are not many dollars available in the market when people want to buy them. In January Foreign Portfolio Investors sold a lot of stocks and this is after they had already taken out a lot of money in 2025. When Foreign Portfolio Investors take out their money they need to convert it into dollars to take it out of the country, which means they need dollars. This increases the demand for dollars. That makes the rupee weaker. Foreign Portfolio Investors selling stocks and debt is the main reason, for this problem. Foreign Portfolio Investors taking out their money is what is causing the rupee to lose its value.

C. Importers’ demand — oil, metals, and working capital

India buys a lot of its oil and other things it needs from countries. When the people who buy these things need dollars to pay for them that means they really want dollars. There were stories in the news that said people who import metals and other industrial things wanted a lot of dollars which made the value of the rupee go down that day. If the prices of these things or the amount that India buys goes up India will need more dollars and that will make the rupee go down even more. India imports a lot of things so when India buys dollars to pay for these shipments that creates a demand, for dollars.

D. Hedging and market positioning (momentum/HFT)

When markets move people who handle money for companies and traders often change their plans to manage risk. Some companies that buy things from countries will buy dollars for the future, which means they need more dollars. Companies that sell things to countries might wait to sell their dollars. Some investors will also bet against the dollar using money they do not have.

This can make the market move quickly because computer programs and investors who use a lot of money they do not have will sell when they lose money. People who write about the market said that companies managing risk was one reason why the market moved fast during the day.

E. Local equity weakness and liquidity conditions

The domestic equity markets went down on the day. This usually happens when the local currency is weak. When shares fall foreign investors sell their rupee assets. Take their money back home. At the time if there is not much money moving around in the local market like at the end of the month big orders can really move the market. The financial press said that the bad trends, in the equity market were putting pressure on the rupee. The domestic equity markets and the rupee are connected like this. When the domestic equity markets fall it can make the rupee weaker. The domestic equity markets and the rupee can affect each other in a way.

3) How big is this move, historically and statistically?

The rupee had a drop of 76 to 77 paise. This is a lot when we look at what has been happening. It is also important because it is now at its point ever. The rupee has gone below the point it reached in December near ₹91.14.

To understand what is happening we need to look at the picture. The rupee has been getting weaker for months now. In the month the rupee has gone down by, about 1.5%.. If we look at the whole of 2025 the rupee has gone down by almost 5%. So this big drop is not something that just happened suddenly. It is part of a trend of the rupee getting weaker. The rupee is continuing to depreciate. This is not an isolated move.

When we look at the numbers a move of ₹0.76 from around ₹90.97 is a deal. This is 0.84% in one day. For people who deal with exchange this is a lot because they usually see small changes. These changes can happen fast and then go back to normal.. When importers and foreign investors are involved the selling can continue for a while. The foreign exchange markets are really sensitive, to these kinds of moves.

4) What did the policymakers, such as the Reserve Bank of India and the government say about this situation or what actions are the policymakers, such, as the Reserve Bank of India and the government likely to take?

On days when the currency value changes a lot people who watch the market pay attention to the Reserve Bank of India. The Reserve Bank of India usually steps in to calm things down when the currency value is changing much. They do this in a ways like buying or selling currency using special tools called FX swaps using the money they have set aside for foreign exchange or simply saying something to make people feel better about the situation.

Recently it seems like the Reserve Bank of India is keeping an eye on what’s happening with the currency but they might be okay with the currency value going down a bit if it is because people are buying and selling things normally rather than because people are trying to make a quick profit by speculating on the currency. The Reserve Bank of India is watching to see if the change in the currency value is because of business, like people importing and investing or if it is because of speculation. Reuters said that some people who study money think the Reserve Bank of India is okay, with the value of the rupee going down because of money movements.. The Reserve Bank of India might take stronger action if the rupee is going down because people are making reckless guesses about what will happen to the money.

The central bank of a country has to make some decisions. They have to think about what will happen if they make the rupee weaker. A weaker rupee can be good for people who export things because it makes their products cheaper for other countries to buy. This can also help reduce the difference between what we import and what we export.

There is a downside to a weaker rupee. It makes the things we import more expensive. For example crude oil will cost more. This can lead to prices for lots of things, which is called inflation. The central bank, which is called the RBI has to be careful. If they try to control the value of the rupee much they might use up all of the foreign money they have saved. If they do not do anything prices might keep going up. It could affect the interest rates, on loans. People who write about these things have been talking about how hard it’s for the RBI to make the right decision. The RBI has to think about the rupee and how it affects exports and imports all the time.

5) What happens away in the market. Things like stocks, bonds and the interest rates, on bonds

Indian equity indices had a bad day. This usually happens when the currency is not doing well and people are not feeling good, about taking risks. The news said the Sensex and Nifty went down by a lot of points. People who talk about the market said the rupee falling down was one of the reasons. When the equity market is weak it makes foreign investors sell more and this creates a cycle. Indian equity indices and the market are affected by this cycle.

Bond markets are going to see yields go up when the currency is weak and people are worried about inflation. This is because things we import like oil are going to cost more. When this happens the prices of things we buy every day may go up too so people who invest in bonds want to get money back. If yields go up it is going to cost the government money to borrow. People who trade are keeping an eye on the 10-year government bond yield and what the Reserve Bank of India is doing on days like this. Bond markets and yields work this way all the time. You can see what is happening with yields, on market news.

6) Macro effects: inflation, trade, current account, growth

Inflation is a problem when the rupee is weak. This is because the country has to pay more for things like energy and commodities that it buys from countries.

India buys a lot of its oil from countries. When the rupee is weak it makes the oil more expensive for India. This can make inflation and fuel prices go up.

The only way to stop this from happening is if the government helps by giving subsidies or changing taxes.

The people in charge of the money in the country the banks think about this problem when they are making decisions about what to do, with the economy and inflation. They worry about inflation and what it can do to the country.

Trade competitiveness is a deal. A lower currency is supposed to help exporters because they get rupees for the money they make from exports. For example if someone exports something and gets one hundred dollars they will get rupees when they exchange it.. This does not happen right away. Many exporters have to pay some of their costs in dollars. So if people, around the world are not buying much exporters will not get all the benefits. At the time the money we spend on imports goes up. This can make our trade deficit bigger if we keep importing the amount of things. Trade competitiveness and export revenue are very important to think about here.

The current account and reserves are facing some problems. If we keep spending a lot of money on imports and people keep taking money out of the country it can cause trouble for the account and reserves. India has a lot of money saved up in foreign exchange reserves. If we try to help the rupee too much we will lose some of those reserves.

The Reserve Bank of India thinks that the current account deficit is not too bad for now but they are worried that we are not getting money coming into the country from investments. This is a point, for India. The current account and reserves need to be watched.

7) Who. Who loses when the Indian rupee is weak? When the Indian rupee is weak some people are going to gain from it. On the hand there are people who will lose from a weak Indian rupee. The people who gain from an Indian rupee are those who export things from India. A weak Indian rupee means that the things they export from India are cheaper for people in countries to buy. This is good for the rupee exporters.. People who import things to India will lose from a weak Indian rupee. They have to pay Indian rupees to buy the things they need from other countries. So a weak Indian rupee is not good, for the importers.

Gainers

Exporters get rupees for each dollar they earn. This is good for them because it helps them sell things to countries. If the exporters can keep their costs from going up they will be able to compete with countries better. The exporters will be in a position, in the next few years.

When it comes to producers who are competing with things that are imported they may find that they are in a better position now. This is because the things that are imported are going to cost money. So domestic producers are likely to do because the imports are becoming costlier. Domestic producers will be able to sell their things at a price that is competitive with the more expensive imports. This is a thing, for domestic producers who are competing with imports.

When tourists bring money into the country they get a better exchange rate. This means they get rupees when they exchange their dollars. The value of their dollars is higher in rupees. So tourists bringing currency like dollars into the country and exchanging it for rupees will get more rupees, for their dollars.

Losers

Importers of energy, metals and technology components have to pay more because of the rupee. This means they make money or they pass the extra cost to the consumers. The consumers then have to pay prices for the things they buy. Importers of energy, metals and technology components are really feeling the effect of the rupee costs.

People will probably have to pay money for petrol and diesel and utility bills. They will also see price rises, for things that we import from countries, like goods and other things that we use to make stuff.

People who own assets in their country through something called Foreign Portfolio Investment or FPI for short can lose money when the value of their investments goes down because of the dollar. This also happens when the shares of companies in their country are not doing well. Foreign Portfolio Investment holders or FPI holders see the value of their investments, in assets fall when the dollar is strong. When domestic shares decline FPI holders of assets also lose money.

8) What is going to happen in these situations?

These probabilities are examples. The things that actually happen will depend on a lot of things like how money and people move what is going on in the world with different countries and what rules governments make.

The Indian Rupee might get back some of its value if the Reserve Bank Of India steps in to help. This can happen if the Reserve Bank Of India gets involved in the spot and swaps markets. The Reserve Bank Of India usually tries to make things better when the Indian Rupee is doing badly. The Reserve Bank Of India does this without saying what it wants to achieve. If things get better globally the Indian Rupee could recover some ground over the few days or weeks.

If Foreign Portfolio Investors keep taking their money out of the country and we keep buying a lot of things from countries the value of the rupee will go down. This means the things we buy from countries will cost more. The rupee could stay weak for a while. When this happens it will be expensive to buy things from countries and that will make prices go up in our country. The Reserve Bank of India will have to watch this situation closely. They might even think about changing the interest rates because of what’s happening with the rupee. The value of the rupee is very important. It affects Foreign Portfolio Investors and import costs and inflation.

Volatility is going to be a problem with big swings in the market during the day. If we keep seeing news about countries and the world market stays nervous we will see big moves up and down. There will be times when the market goes up fast and then times when it corrects itself and goes back up again. This is what happens to money in countries when there is a lot of risk and uncertainty. We have seen this happen before with money in countries when there are big problems in the world. Volatility and big swings, in the market are what we can expect.

9) implications. What businesses and investors and individuals should watch out for or do

Businesses and investors and individuals need to pay attention to the practical implications.

The practical implications are important for businesses and investors and individuals to consider.

They should watch out for the implications and do something about it.

Businesses and investors and individuals should take action when it comes to the implications.

For corporates and importers

When you look at the treasury hedging you should think about layering the hedges. This means you do not do one hedge at one time. Instead you do a lot of hedges over time. This is better, than doing one hedge that can cause problems.

If you do not have a lot of money you should lock in the things you need to pay for in the future. You can also look for hedges. A natural hedge is when you have money coming in and money going out at the time. For example if you have money coming in from customers and you have to pay money to suppliers you can use the money from the customers to pay the suppliers. This is a way to balance the treasury hedging. Review the treasury hedging to see if you can do this.

We need to think about what will happen if the cost of the things we import goes up. So we should make a plan for our budget that includes costs for imports. We also need to think about what we will do with our prices or the amount of money we make on each thing we sell which is called the margin when these costs go up. This way we can be ready, for import costs and make sure our business is still okay.

For exporters

We need to look at the pricing strategy. If the rupee stays weak for a time we should think about making small changes to the prices in other countries. This way we can take advantage of the currency situation. Make some extra money. We are talking about the pricing strategy for markets. The idea is to make price adjustments to capture the gains, from the currency.

Manage FX receivables: decide between immediate conversion vs staged conversion depending on your view and cash needs.

For investors (retail & institutional)

People who invest in the stock market should pay attention to how different sectorsre affected. The companies that export things and the people who make commodities might do well. On the hand the companies that make things that people do not really need and the ones that import a lot of stuff might struggle. This is something that equity investors should think about when they’re making decisions about their money. Equity investors need to consider the impact, on sectors, especially equity investors who have money in companies that are exporters or commodity producers because these equity investors may see some benefits.

People who invest in fixed income should keep an eye on what the Reserve Bank of India’s doing and what is happening with inflation. If interest rates go up it could reduce the money they get from bonds. Fixed-income investors need to watch the Reserve Bank of India operations and also look at inflation numbers because rising interest rates could hurt the returns they get from their bonds.

Consider currency-hedged equity funds if concerned about rupee volatility.

For consumers

If the rupee stays weak we can expect that fuel prices will go up and imported goods will also become more expensive. The weak rupee is going to affect the prices of fuel and imported goods.

If you are planning to travel to another country changing your money now might cost you a bit more.. It could be a good idea if you think the money in your country is going to be worth less soon. This way you can fix the rate of exchange, for your travel.

10) How reliable is this reporting and what are the limits of media coverage?

Lots of news sources like Reuters, Economic Times, Xinhua, Bernama, Times of India and Tribune as well as financial websites said what the market closed at and gave similar reasons for it: problems between countries foreign investors pulling out their money and people buying things from other countries. News sources can tell us what is happening in the market quickly but the real reasons, for what is happening can be complicated and not always clear. The market is affected by things and sometimes we are not really sure why things are happening. People usually have to wait to get the numbers that show exactly how money is moving in and out of the market. These numbers, like how much money’s coming in and out and what the Reserve Bank of India is doing are not available right away. So when we talk about what’s happening in the market right now we have to use the information that we have. Reuters pointed out something that the prices of currencies, for the future might not really show how much the currency is expected to lose value. This is a detail that traders pay attention to because it can help them understand how people are feeling about the market. The forward premiums and the expected depreciation of the currency are things that traders use to figure out what the market sentiment is. Reuters said that the forward premiums might be making the expected depreciation look smaller than it really is.

11) Quick answers to likely reader questions

Is this the rupee ever?

Yes the news says this is the lowest the rupee has ever been it is around ₹91.73. It even went up to ₹91.74 for a little while.

The rupee was also very low in December 2025 it was, around ₹91.14.

Will the Reserve Bank of India defend the rupee?

The Reserve Bank of India usually steps in to stop the rupee from falling quickly.. It has to think about how this will affect the money it has in reserve and how it will make more money available.

Recently people have said that the Reserve Bank of India is okay, with the rupee falling a bit if it is because of normal money movement. However the Reserve Bank of India will take action if people start selling the rupee just to make a profit.

So does a rupee mean Indias economy is in trouble? Not necessarily. You see currencies go up and down with the flow of money and how people feel about taking risks. When the rupee is weak it is bad for people who buy things from countries because they have to pay more.. It is good for people who sell things to other countries.

The big question is what happens in the run. If the rupee is weak, for a time it might not be so bad.. If it stays weak for a long time that is a problem. Some people who study the economy said that Indias problem is not so much that it spends more than it earns from countries. The problem is that not enough money is coming into the country from investors.

12) Takeaway — what to watch next (short checklist)

The Reserve Bank of India statements and the Foreign Exchange intervention data are things to look at. Any clear actions that the Reserve Bank of India takes or any guidance they give with words will be very important, for the Reserve Bank of India and Foreign Exchange. The Reserve Bank of India statements and Foreign Exchange intervention data will help us understand what the Reserve Bank of India is doing.

We need to look at the FPI flow data to see what is going on. The weekly and monthly net flows will tell us if foreign investors are still selling. If the FPI flow data shows that foreign investors are consistently selling that is a problem. We have to check the FPI flow data to find out if the foreign selling is going to continue. The FPI flow data will give us an idea, about what foreign investorsre doing.

The price of oil and metal imports is really important. This is because when the prices of these things go up or down it affects how money India has to pay for them. This can then make the value of the rupee go up or down too. The changes in oil and metal prices will make a big difference, in how much the rupee moves when we import things.

The direction of the equity market is a big concern. If the domestic equity market keeps falling fast it could lead to more Foreign Portfolio Investors selling their shares and this will put a lot of pressure on the rupee. The domestic equity market is very important. Its direction will have a big impact, on the economy.

The news about what’s happening in the world and how people feel about risk. This is what caused the problem, with the rupee. If things get better the rupee could get stronger again. The geopolitical headlines and global risk sentiment are very important so if they improve the rupee could recover.

The record low in the rupee on January 21 2026 happened because of a things. Global headlines were a deal and they made people want to avoid risk. At the time foreign investors were selling and people, in the country who import things needed dollars. They also wanted to protect themselves from losing money because of the dollar.

This is a reminder that what happens with the rupee is connected to what’s going on in the rest of the world. The rupee moves because of what’s happening in the country and because of what is happening with money moving around the world. The central banks and companies and households all have to make choices when they are dealing with the effects of the rupee moving. The rupee and its movement is something that affects everyone, including banks and companies and households and they all have to think carefully about what to do. Short-term volatility can be intense; the medium-term path will depend on how capital flows, commodity prices, and policy responses evolve.