Rupee Hits All-Time Low: Indian Currency Slides to 92 Against U.S. Dollar

The morning opened on a tense note for currency markets. Rupee hits all-time low levels once again, slipping to 92 against the U.S. dollar in early trade on Thursday, January 29, 2026. The move wasn’t sudden. It felt like a slow, steady push—built over days of pressure, global uncertainty, and rising dollar demand.

This marks another difficult chapter for the Indian currency, which has been testing historic lows repeatedly through January.

Market Performance: A Heavy Start for the Rupee

At the interbank foreign exchange market, the day began with the rupee opening at 91.95. Within moments, it edged lower and touched 92.00, losing 1 paisa compared to its previous close.

This level is significant. It is the weakest point the rupee has ever touched against the dollar.

A quick look at the recent trend tells the story:

• January 28: Rupee closed at 91.99, down 31 paise
• January 23: Rupee touched 92.00 during intraday trade
• January 29: Rupee hits all-time low again at 92.00

The pressure has been persistent, not reactionary.

Main News: Why the Rupee Is Under Stress?

Several global and domestic factors lined up at the same time, pushing the rupee into record-low territory.

First, the U.S. Federal Reserve held interest rates steady in its first policy decision of 2026. While rates remained unchanged, the announcement nudged the dollar index higher after it had fallen to nearly 4½-year lows earlier.

A firmer dollar usually means less breathing room for emerging market currencies. The rupee felt that impact almost immediately.

Second, geopolitical uncertainty continued to cloud global markets. Rising tension around supply risks has made investors cautious, leading to lower appetite for risk-heavy assets.

As a result, capital flows leaned defensive. Dollar demand remained steady. Emerging market currencies stayed under pressure.

This combination proved enough for the rupee to slide further.

Oil Prices Add to the Pressure

Crude oil prices rose sharply during the week, extending gains for a third straight session.

Here’s where the numbers stood:

• Brent crude traded 1.32% higher
• Price reached USD 69.30 per barrel
• Oil prices rose over 4% during the week

For India, this matters more than most. As a net oil importer, higher crude prices directly increase dollar demand, which weighs further on the rupee.

It’s a familiar pressure point—and once again, it showed up when the currency was already vulnerable.

Company & Market Details: Equity Markets Reflect Caution

The weakness in the rupee was mirrored in domestic equity markets during early trade.

Key benchmarks opened lower:

• Sensex declined 343.67 points to 82,001.01
• Nifty slipped 94.2 points to 25,248.55

Despite the decline, foreign institutional investors showed selective interest earlier:

• FII equity purchases stood at ₹480.26 crore on Wednesday

The mixed signals suggest caution rather than panic—but the mood remains fragile.

Economic Data Offers a Bright Spot

Amid currency pressure, domestic economic data offered a rare point of relief.

India’s industrial production surprised on the upside:

• IIP growth rose 7.8% in December 2025
• This marks the fastest pace in over two years
• Growth was driven by:
  • Manufacturing
  • Mining
  • Power sectors

For comparison, industrial output had grown only 3.7% in December 2024.

The data signals underlying strength in the real economy, even as financial markets navigate volatility.

Where Things Stand Now?

As of early trade, rupee hits all-time low remains the dominant theme in currency markets. The number—92 against the dollar—isn’t just a statistic. It reflects global caution, persistent dollar demand, rising oil prices, and the fragile balance emerging markets are trying to maintain.

The rupee has revisited this level more than once in January. That repetition tells its own story.

Summary

• Rupee touched its all-time low of 92 against the U.S. dollar
• Opened at 91.95, slipped 1 paisa in early trade
• Closed at 91.99 on January 28, down 31 paise
• Dollar strengthened after the Fed kept rates unchanged
• Brent crude rose to USD 69.30 per barrel
• Equity markets opened lower, Sensex and Nifty both declined
• IIP growth surged to 7.8% in December 2025

The session wasn’t chaotic—but it was telling. And for now, the story of the rupee remains tightly linked to global cues, oil prices, and dollar strength.

Source: The Hindu