Indian rupee falls to record low as capital outflows and tariff pressures persist
The rupee hit an all-time low on Thursday as capital outflows and tariff pressures weighed on the currency. The central bank intervened to manage volatility.
Insights:
The Indian 
IN rupee fell to an all-time low of 91.9850 per U.S. 
US dollar on January 29, 2026, driven by a combination of weak foreign capital flows, U.S. US tariffs on Indian IN exports, and increased hedging by importers. This decline prompted the Reserve Bank of India IN to conduct market intervention, a move that has strained domestic debt market liquidity and pushed up bond yields. The currency's weakness and the subsequent central bank support are significantly affecting the external balances of India IN while creating difficult trade-offs for monetary policy.
IN rupee fell to an all-time low of 91.9850 per U.S. US dollar on January 29, 2026, driven by a combination of weak foreign capital flows, U.S. US tariffs on Indian IN exports, and increased hedging by importers. This decline prompted the Reserve Bank of India IN to conduct market intervention, a move that has strained domestic debt market liquidity and pushed up bond yields. The currency's weakness and the subsequent central bank support are significantly affecting the external balances of India IN while creating difficult trade-offs for monetary policy.
