Rupee Falls Near 92 Per Dollar, Suffers Worst Weekly Loss In Six Months

The Indian rupee fell to an all-time low on Friday and saw its largest weekly decline in six months.

Foreign investors have been selling off their positions in Indian stocks and importers have stepped up their demand for US dollars in order to shield themselves from any additional losses.

The Indian rupee fell to 91.9650 against the US dollar at the day's low point and ended the day at 91.94, 0.34 per cent weaker than the previous close.

Over the course of the entire week, the Indian rupee lost 1.18 per cent value, while the overall loss in value for the month has been 2.3 per cent.

Rupee Underperforms Despite Weak Dollar

This week, the coming-after of the rupee was a particularly clear demonstration of how out-of-step with other Asian currencies the Indian rupee is.

Most Asian currencies have gained modestly against the U.S. dollar this week, following a drop in the dollar index when U.S. President Donald Trump made comments about Greenland and then modified that statement.

With those types of dollar movements, the rupee should also have had a positive response; however, it did not.

Experts on currency markets have noted that this behaviour has been a part of our currency marketplace for some time. "What we see now is similar to what we have been seeing for most of 2025; being under a constant state of pressure from the rupee", stated Kunal Kurani, Vice President of Mecklai Financial Services.

Foreign Outflows and Hedging Add Pressure

Pressure on the rupee increased steadily throughout the week and month. Foreign investors continued to reduce their exposure to Indian equities, leading to consistent dollar outflows. At the same time, importers and large companies increased their dollar hedging, expecting the rupee to weaken further.

Exporters also slowed down their dollar selling in the forward market. This reduced the supply of dollars and added more pressure on the currency.

RBI Steps In, But Trend Remains Weak

The Reserve Bank of India (RBI) intervened regularly to limit the fall in the rupee. Bankers said the central bank stepped in strongly at least twice during the week by selling dollars in the spot market and using buy-sell swap operations to manage liquidity.

While these steps helped slow the pace of the fall, they were not enough to reverse the overall trend.

Indian stock markets also remained weak due to heavy foreign selling. The Nifty 50 index fell 2.5 per cent during the week. In January alone, foreign investors pulled out nearly $3.5 billion from Indian equities, making it harder for the RBI to stabilise the rupee.