The Indian rupee depreciated 31 paise to touch an all-time low of 91.28 against the US dollar in early trade on Wednesday, amid rising geopolitical uncertainty that has kept emerging market currencies under pressure.
Forex traders said renewed US expansionary signals, as indicated by US President Donald Trump’s intent to take control of Greenland, have increased risk aversion and kept dollar’s demand steady as investor mood remains cautious.
Moreover, a sluggish domestic stock market triggered by an exodus of foreign capital dented investors’ sentiment further, they said.
At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to trade at 91.28 against the greenback, down 31 paise from its previous close.
On Tuesday, the rupee had depreciated 7 paise to close at a record low of 90.97 against the US dollar.
Also Read: Rupee crashes to new low of 90.84
“Markets were already uneasy when US President Donald Trump revived trade war rhetoric and renewed his push for Greenland. US Treasury yields jumped to four-month highs, while the dollar slipped for a second day – a sign that investors are questioning not just risk, but direction,” said CR Forex Advisors MD – Amit Pabari.
He further noted that “persistent global unease, coupled with a sustained break above 91.07, could gradually open the door toward the 91.70-92.00 zone, unless restrained by active intervention from the RBI.
“On the downside, any corrective pullback is likely to find its first line of support in the 90.30–90.50 range.” On December 16, 2025, the rupee reached its previous lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 98.59.
Brent crude, the global oil benchmark, was trading 1.11 per cent lower at USD 64.20 per barrel in futures trade.
On the domestic equity market front, Sensex dropped 385.82 points to 81,794.65 in opening trade, while Nifty declined 91.5 points to 25,141.
Foreign institutional investors offloaded equities worth ₹2,938.33 crore on Tuesday, according to exchange data.
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