Indian rupee depreciated to an all-time low of 91.55 against the US dollar on Wednesday, as escalating global trade war raised risk-aversion and kept emerging market currencies under pressure.
At the interbank foreign exchange, the rupee opened at 91.05 and depreciated to 91.55 against the greenback, down 0.63% from its previous close.
On Tuesday, the rupee declined 7 paise to close at a record low of 90.97 against the US dollar. The rupee reached its previous lowest intra-day level of 91.14, and its lowest closing level of 90.93 against the American currency on December 16, 2025.
Global geopolitical uncertainty increased after US President Donald Trump’s push over Greenland raised concerns over the potential for a US–Europe trade dispute. Weakness in the Indian stock market and persistent outflow of foreign capital also pressurized rupee.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 98.59.
“Markets were already uneasy when US President Donald Trump revived trade war rhetoric and renewed his push for Greenland. US Treasury yields jumped to four-month highs, while the dollar slipped for a second day – a sign that investors are questioning not just risk, but direction,” said Amit Pabari, MD, CR Forex Advisors.
Meanwhile, the Indian stock market extended losses, following weakness in global equities amid rising geopolitical tensions. The Sensex was down 125.67 points, or 0.15%, at 82,054.80, while the Nifty 50 traded 45.80 points, or 0.18%, lower at 25,186.70.
Crude oil prices traded lower. Brent crude, the global oil benchmark, declined 1.14% to $64.18 per barrel in futures trade.
Foreign institutional investors offloaded equities worth ₹2,938.33 crore on Tuesday, according to data on the BSE.
Rupee Outlook
According to Amit Pabari, MD, CR Forex Advisors, uncertainty remains the dominant force for now.
“Persistent global unease, coupled with a sustained break above 91.07, could gradually open the door toward the 91.70 – 92.00 zone, unless restrained by active intervention from the RBI. On the downside, any corrective pullback is likely to find its first line of support in the 90.30 – 90.50 range,” Pabari said.
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