Indian rupee hit a record low of 92.00 against the US dollar in early trade on Thursday, following broad weakness across Asian currencies amid recovery in the American currency. The Indian rupee opened at a low of 91.99 per US dollar as against its previous close of 91.78 level.
The US dollar index rose from its 4-1/2-year lows, after the US Federal Reserve kept rates unchanged, while US Treasury yields rose after the Fed acknowledged that inflation remained elevated and the labour market continued to stabilize.
Sustained outflows of foreign capital, rising geopolitical uncertainty and increased risk aversion, kept emerging market currencies under pressure, leading to the rupee touching an all-time low.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.29% lower at 96.16.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, the level of 92 is very crucial for rupee where the RBI may come in on the table.
On the domestic front, Union Finance Minister Nirmala Sitharaman will table the Economic Survey 2025–26 in Parliament today, ahead of the Union Budget on February 1.
The Indian stock market traded lower amid weak global market cues and persistent selling by foreign institutional investors (FII). The Sensex traded 413.40 points, or 0.50%, lower at 81,931.28, while the Nifty 50 was down 122.35 points, or 0.48%, at 25,220.40.
Meanwhile, a rally in crude oil prices also pressurized the rupee. Brent crude oil price gained 1.32% to $69.30 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 1.38% to $64.08.
Rupee Outlook
Amit Pabari, MD, CR Forex Advisors said the steady capital drain has kept dollar demand elevated.
“A sustained move above 92.00 could open the door toward 92.20–92.50, but RBI support and a broadly softer dollar backdrop may cap upside and gradually pull the pair back toward 91.00–91.20,” Pabari said.
According to Jigar Trivedi, support for rupee may be seen near 91.70 and above record 92 levels, next resistance would be 92.20.
Ponmudi R, CEO of Enrich Money noted that the structure of higher highs and higher lows remains intact for USD/INR, supported by policy divergence, sustained foreign portfolio outflows, and dollar-side macro stress.
“As long as the USD/INR pair sustains above the 91.90–92.10 zone, the positive bias remains preserved, with gradual upside potential toward 92.50+ in the coming weeks,” said Ponmudi R.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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