Rupee hits record low of ₹92 against U.S. dollar

The rupee hit an all-time low of ₹91.9850 against the dollar in the last session, before opening slightly stronger at ₹91.9125 on Friday, holding steady from its earlier close of ₹91.9550.
So far this month, the currency has fallen about 2.3%, making January its worst month since September 2022.

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Global factors influencing the currency

A mix of global uncertainty and slowing foreign investments into emerging markets like India is pushing the rupee lower.
With interest rates rising in advanced economies, investors are shifting money to markets with better returns.
Since India runs a current account deficit, it's more exposed when foreign capital slows down, putting extra pressure on the rupee.

CEA’s assessment of rupee movement

At the Economic Survey 2025-26 press briefing, Chief Economic Adviser V. Anantha Nageswaran made it clear this isn’t just an India-specific issue.
He said currencies in other countries with current account deficits are also taking a hit, and what we’re seeing is more of a financial adjustment than a sign of economic trouble in India.
Capital flows and investment trends

Nageswaran noted that while gross FDI is still growing, net FDI has dipped, mainly because earlier investors are pulling profits out and Indian firms are investing more abroad.
He also mentioned that global valuation concerns and tariff-related uncertainties are influencing short-term portfolio flows.

Long-term drivers of currency stability

According to the CEA, strengthening India's manufacturing sector is key to long-term currency stability. A strong export base helps balance the current account, builds up forex reserves, and adds resilience to the rupee.
Policy approach

The RBI isn’t chasing a specific exchange rate, but it is keeping a close eye on volatility. The rupee’s relatively stable opening after hitting a record low suggests the central bank is carefully managing the situation behind the scenes.