Rupee Falls 50 Paise Against US Dollar, Near All-Time Low
Indian rupee falls 50 paise against the US dollar, nearing record low levels amid rising crude oil prices and foreign fund outflows.
Mumbai, January 16: The Indian rupee crashed by 50 paise to close at 90.84 against the US dollar, hovering close to its all-time low, as pressure from rising crude oil prices, strong US dollar, and continued foreign fund outflows weighed heavily on the currency.
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This marks the third consecutive session of decline for the rupee, reflecting weak global sentiment and growing concerns over India’s trade deficit.
Rupee Under Pressure for Third Straight Session
In the interbank foreign exchange market, the rupee:
- Opened at 90.37
- Hit an intraday low of 90.89
- Closed at 90.84 (provisional)
The rupee had earlier declined 11 paise on Wednesday and 6 paise on Tuesday, extending its losing streak. The domestic forex market remained closed on Thursday due to the Mumbai civic elections.
Trade Deficit and Foreign Outflows Add to Weakness
Currency traders said the rupee came under fresh pressure after data showed that India’s trade deficit widened to USD 25.04 billion in December 2025, compared to USD 24.53 billion in November and USD 22 billion in December 2024.
Key factors impacting the rupee include:
- Sustained foreign institutional investor (FII) outflows
- Firm US dollar amid strong American economic data
- Rising global crude oil prices
- Volatile global market sentiment
Dollar Strong, Crude Oil Prices Rise
The US dollar index, which measures the dollar’s strength against six major currencies, was trading slightly lower at 99.26, but remained firm overall.
Meanwhile, Brent crude, the global oil benchmark, rose 1.14% to USD 64.49 per barrel, adding pressure on the Indian currency, as India is a major crude oil importer.
Stock Markets End Higher Despite Rupee Fall
Despite weakness in the rupee, domestic equity markets ended in the green:
- Sensex rose 187.64 points to close at 83,570.35
- Nifty 50 gained 28.75 points to settle at 25,694.35
However, foreign institutional investors sold equities worth ₹4,781.24 crore, indicating continued risk aversion among overseas investors.
Outlook for Rupee
Market experts expect the rupee to remain under pressure in the near term due to:
- Strong US dollar
- Ongoing foreign fund outflows
- Elevated crude oil prices
- Global trade and geopolitical uncertainties
The USD-INR exchange rate is expected to trade in the range of 90.50 to 91.25 in the coming sessions.
Near Record Low Levels
It may be recalled that the rupee had earlier recorded its lowest-ever closing level of 90.93 on December 16, while touching a lifetime intraday low of 91.14, highlighting continued stress on the domestic currency.
As global factors remain uncertain, market participants will closely watch crude prices, foreign investment flows, and global economic data for further direction.
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