The Indian Rupee plummeted to a historic low of 91.95 against the USD on Friday, January 23, 2026, marking a significant downturn for the currency, making it one of the major Latest News in India in the financial sector. The driving force behind this punitive devaluation is largely due to unrelenting outflow of foreign funds and a huge selloff in domestic stocks with the Nifty 50 recording a 5% decline this month alone. The market mood has been further draining with regulatory summons being issued to the large Indian conglomerates thus raising jitters amongst the international investors. However, in spite of the vigorous intervention by the reserve bank of India (RBI) to maintain the exchange rate at acceptable levels, the currency fell beyond the critical support levels due to panic purchasing by oil and gold importers as they hurried to hedge their positions.
Indian Rupee Plunges Amidst Equity Sell-Off
The slide in the Indian Rupee has been exacerbated by a record exodus of foreign capital. In January, Foreign Portfolio Investors (FPIs) have withdrawn about 3.5 billion dollars of the Indian markets citing valuations as well as enhanced yields in the US bonds. This pressure heightened when the US Securities and Exchange Commission (SEC) issued new summons to the Adani Group leading to a plummeting down of banking and infrastructure shares. This capital flight has left the domestic currency vulnerable, with the Record Low reflecting the deepening unease in the financial sector regarding India’s short-term economic stability.
USD Strength and Import Demand Drive Record Low
The USD gained strength because worldwide factors impacted Asian currencies. Importers, fearing further depreciation, have aggressively bought dollars which created a demand-supply mismatch that the central bank is struggling to bridge. The RBI has sold dollars in the spot market to reduce volatility yet the ongoing need for US dollars indicates the rupee will experience additional challenges before it reaches a stable exchange rate.
