Indian rupee hits fresh record low as importer dollar demand weighs

The Indian rupee slipped to a fresh record low on Friday (January 23, 2026) as strong dollar demand from importers and corporates weighed on the currency, despite the Reserve Bank of India’s efforts to smooth volatility. 

The rupee fell to 91.77 per U.S. dollar, surpassing the previous record low of 91.7425 set earlier this week, according to Reuters. 

Early relief fades as corporate dollar buying returns

The local currency opened firmer after an overnight improvement in risk sentiment, following comments by U.S. President Donald Trump that eased immediate concerns about tariff threats linked to Greenland-related tensions with Europe, analysts said. 

But the rebound was short-lived.

Traders said corporate and importer demand — especially ahead of month-end payments — quickly returned, dragging the rupee lower and keeping it under pressure near historic levels.

RBI’s role: slowing the fall, not defending a line

Market participants said the RBI has been active through liquidity management tools and market operations aimed at preventing disorderly moves in the rupee.

Traders noted that the central bank’s actions appear focused on containing the pace of depreciation, rather than defending any particular level in spot trading.

Risk-off mood adds to pressure on emerging market FX

The rupee’s decline comes amid higher global volatility, as investors have become more defensive and demand for safe-haven assets — including the U.S. dollar — has strengthened.

The move has also increased sensitivity in India’s import-heavy segments, where currency weakness can raise landed costs for commodities and industrial inputs.

Why This Matters

The rupee’s slide to a new record low highlights how quickly global risk sentiment and corporate dollar flows can overwhelm short-term stabilisation efforts.

A persistently weak rupee can complicate India’s inflation outlook by raising import costs, and can also influence corporate earnings, trade competitiveness, and foreign investor allocation to Indian markets.

Summary

• The rupee hit a fresh record low of 91.77/$ on January 23, 2026. 
• Traders cited strong importer and corporate dollar demand as the key driver. 
• Early support faded as flows returned and risk sentiment stayed fragile. 

FAQs

Q1: Why did the rupee hit a new record low?

Traders attributed the fall mainly to heavy dollar demand from importers and corporates, combined with global volatility and risk-off sentiment. 

Q2: What was the record low level?

Reuters reported the rupee hit 91.77 per U.S. dollar, a new record low. 

Q3: Is the RBI intervening?

Market participants said the RBI has been active in smoothing volatility and managing liquidity, aimed at slowing sharp moves in the currency. 

Q4: Why does global sentiment matter for the rupee?

When risk appetite weakens globally, investors tend to rotate into the U.S. dollar and reduce exposure to emerging market currencies like the rupee.

Q5: Who benefits from rupee weakness?

Exporters and companies with dollar revenues may benefit, while import-heavy sectors typically face cost pressure.