Rupee Slips To Fresh Record Low Against Dollar, Corporate Dollar Demand Keeps Pressure On Currency
The rupee hit a fresh record low of 91.93 per dollar despite brief recovery attempts. Strong dollar demand from corporates, continued foreign investor outflows, and global uncertainty kept pressure on the currency, even as softer US tariff rhetoric offered limited support.
Rupee falls to a new all-time low |
Mumbai: The Indian rupee fell to a new record low against the US dollar on Friday, January 23, touching 91.93 per dollar. The fall came despite a brief attempt at recovery during the day, as strong demand for dollars from companies and importers continued to weigh on the local currency. The rupee also moved past its earlier record low of 91.74, showing continued weakness.
Early recovery fails to last
The rupee opened with some strength and tried to recover during early trade. This was supported by slightly better global market sentiment. However, the gains did not last long. As trading progressed, heavy buying of dollars pushed the rupee lower again, erasing the early improvement.
Forex traders said demand for the US dollar remained high, especially from corporates making overseas payments and importers covering their dollar needs.
ALSO READ
Global cues offer limited support
Global sentiment improved a little after US President Donald Trump softened his comments on tariff threats against European countries linked to Greenland. This helped reduce immediate fears of a trade war and led to a small pullback in the dollar from recent highs.
The softer tone also allowed emerging market currencies, including the rupee, to recover slightly from their lowest levels during the day. However, this support was limited and short-lived.
ALSO READ
Foreign outflows keep pressure high
Despite the temporary relief from global cues, the rupee remains under pressure due to continued foreign portfolio outflows. Foreign investors have been pulling money out of Indian markets amid ongoing global uncertainty. This has reduced the supply of dollars in the domestic market, adding to pressure on the rupee.
Traders said concerns around global geopolitics and shifting trade policies continue to make investors cautious.
Trade deal seen as key support
Market participants believe the upcoming India–US trade agreement could help stabilise the rupee in the coming period. A clear agreement may improve investor confidence and support foreign inflows.
Until then, the rupee is expected to remain volatile, with movements largely driven by dollar demand, foreign flows, and global developments.
RECENT STORIES
-
-
-
-
-