Financial Shock: Indian Rupee Slumps to Record Low of 91.91 Against US Dollar
Mumbai/New Delhi, January 23, 2026 — The Indian financial markets faced a turbulent session today as the Indian Rupee (INR) crashed to an unprecedented psychological low of 91.91 against the US Dollar (USD). This marks the weakest level in the history of the domestic currency, sparking concerns over imported inflation and a widening trade deficit.
Why the Rupee is Crumbling: 3 Major Factors
The sharp depreciation from the previous day’s close is attributed to a “perfect storm” of global and domestic factors:
- Aggressive FII Outflows: Foreign Institutional Investors (FIIs) have been on a selling spree in the Indian equity markets. In the last 24 hours alone, over ₹2,500 crore was pulled out of the Sensex and Nifty, leading to a massive shortage of Dollars in the local market.
- The “Davos Uncertainty”: Despite President Trump’s announcement of a “Framework Deal” for Greenland at the World Economic Forum, global investors remain hedge-wary. The lingering threat of tariffs on European allies has strengthened the Dollar Index (DXY) as a safe-haven asset.
- Surging Oil Prices: With international Brent crude prices hovering near the $90 mark, India’s high demand for imported oil is draining its foreign exchange reserves, further devaluing the Rupee.
Impact on Your Pocket: What Costs More?
The devaluation of the currency isn’t just a number on a screen; it has real-world consequences for the common man:
- Fuel Prices: Since India imports the bulk of its fuel, a weaker Rupee usually translates to higher prices at the petrol pump.
- Tech & Electronics: Expect a 5-8% hike in the prices of smartphones, laptops, and home appliances as imported components become more expensive.
- Foreign Education: Students planning for the Fall 2026 intake in the US or UK will face significantly higher tuition costs in Rupee terms.
| Category | Impact Level | Reason |
| Petrol/Diesel | High | Increased landed cost of crude oil |
| Smartphones | Medium | Higher cost of imported chipsets |
| Edible Oil | High | India is a major importer of palm/sunflower oil |
| Gold | High | Domestic gold prices rise when the Rupee falls |
The Road Ahead: Will the RBI Intervene?
Market analysts at Bharat Kesari suggest that the Reserve Bank of India (RBI) may step in to sell Dollars via state-run banks to prevent the Rupee from breaching the 92.00 mark. However, with the Union Budget 2026 just days away (February 1st), the market expects high volatility to continue.
“The 92.00 level is a critical psychological barrier. If the Rupee closes below this for three consecutive sessions, we could see a slide toward 93.50 by the end of the quarter.” — Financial Analyst, Bharat Kesari.