Rupee Hits Record Low as Global Risk Fears Rise Over Greenland Dispute

Mumbai | 21 January 2026: The Indian rupee fell to an all-time low against the US dollar today, slipping past its previous record of 91.0750 per dollar. The currency opened weak and continued to slide, reaching around 91.19 per dollar, marking a fresh low in its history. The drop comes amid growing risk-aversion in global markets triggered by geopolitical tensions, especially the recent Greenland dispute involving former US President Donald Trump. This uncertainty added pressure on emerging market currencies, including the rupee. Economists also pointed out that the rupee is being affected by internal factors like the delay in finalising the India-US trade deal and rising capital outflows. Madhavi Arora, lead economist at Emkay Global Financial Services Ltd., said, “The rupee is getting hit by global uncertainties due to geopolitical developments, in addition to idiosyncratic issues like the US trade deal and capital outflows.” Foreign investors have been pulling money out of Indian equities for the second consecutive month. This month alone, they have withdrawn $2.7 billion, following about $19 billion of outflows last year. The Reserve Bank of India has stepped in during recent sessions by selling dollars to support the rupee, but there was no confirmation of a similar intervention today. With global tensions rising and trade negotiations pending, the rupee is expected to remain under pressure until market sentiment improves. Rupee Slips to New Record Low as Global Fear Rises Over Greenland Dispute The Indian rupee fell to its lowest level ever against the US dollar today, sliding past the previous record of 91.0750 per dollar. The currency opened weak and continued to drop, reaching around 91.19 per dollar during the day. The fall is mainly due to growing global risk-aversion after the Greenland dispute involving Donald Trump, which has shaken investor confidence. This global uncertainty has added pressure on the rupee, pushing it down further. Economists also point out that India’s currency is facing internal challenges like the delay in the India-US trade deal and increasing capital outflows. Madhavi Arora, lead economist at Emkay Global Financial Services Ltd., said, “The rupee is getting hit by global uncertainties due to geopolitical developments, in addition to idiosyncratic issues like the US trade deal and capital outflows.” Foreign investors have pulled out $2.7 billion from Indian equities this month, following about $19 billion of outflows last year. The Reserve Bank of India has previously intervened by selling dollars to support the rupee, but it was not clear if the RBI took similar action today.