Rupee hits all-time intraday low near 91.74 per dollar as markets reel
Rupee hits all-time intraday low near 91.74 per dollar as markets reel
Rupee slides to an intraday record amid persistent outflows and a firm dollar, with stocks slipping as global tensions and oil cues add to pressure.
The Indian rupee sank to an all-time intraday low of 91.74 per dollar in early trade on Wednesday, pressured by persistent foreign fund outflows and robust greenback demand from metal importers. The unit opened at 91.05 and slid to the new low, down 77 paise from the previous close, underscoring the currency’s fragile run in a risk-off environment. On Tuesday, the rupee had closed at 90.97 per dollar, with the previous intra-day low at 91.14 recorded in December 2025, highlighting the volatility that traders have faced in recent weeks.
Analysts said broader risk-off sentiment, along with geopolitical jitters in Europe over the Greenland issue and potential tariffs, has kept investors cautious and leaning toward the dollar. The greenback’s strength comes as global liquidity conditions remain unsettled and hedging costs rise for foreign investors, further complicating the currency landscape. The dollar index hovered around 98.61, while Brent crude traded about 1.9% lower at $63.70 per barrel, adding another layer of complexity to the market environment.
Domestic equity benchmarks mirrored the risk-off mood, with the Sensex slipping around 290 points to near 81,890 and the Nifty down by roughly 77 points to about 25,155. The combination of currency weakness and softer equity performance paints a cautionary picture for investors navigating India’s asset markets in the near term.
Industry observers emphasised that currency volatility continues to erode returns for foreign investors repatriating profits, as hedging costs eat into yields. “Long-term investors face compressed yields from elevated hedging costs, while short-term traders encounter heightened risks of sudden capital flight,” noted a market observer. He added that mitigating currency volatility and maintaining policy credibility are essential to sustaining investor confidence amid global uncertainties.
