The last time the rupee fell sharply in a single day was on November 21, 2025, when it plunged by 93 paise.
The Indian currency fell around 73 paise from the previous close of 90.97. The rupee started weaker at 91.10 per USD and tested an intraday low at 91.7425. However, the RBI apparently intervened in the market and caused a slight decline.
The last time the rupee fell sharply in a single day was on November 21, 2025, when it plunged by 93 paise.
“The Indian rupee weakened above 91.70 for the first time on Wednesday as deteriorating global risk sentiment reinforced capital outflow pressures that have weighed on the currency over the past year.
“Risk appetite turned sharply negative after US President Donald Trump threatened new tariffs on eight European countries unless the United States is allowed to purchase Greenland, raising the risk of retaliation from Europe. This escalation has reinforced a broad risk environment in global markets,” said Amit Pabari, MD, CR Forex Advisors.
Pabari said both global and Indian stocks have fallen in the past two sessions, while gold prices have risen – clear signs of defensive positioning. Such conditions are generally unfavorable for emerging market currencies, putting renewed pressure on the rupee, he added.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that the USD/INR has risen to record highs, driven by a combination of persistent FPI outflows, unfavorable global risk sentiment due to geopolitics and trade frictions between the US and India, and a slowdown in export dollar conversion, even as demand for hedging by importers remains strong.
“RBI intervention will help smooth out volatility but will not reverse the trend. In the near term, USD/INR could rise to levels of 92-92.50. Key catalysts to watch are progress in the India-EU FTA and cues from the Union Budget on February 1.
“In the medium term, the rupee appears undervalued, but stabilization will require improvement in capital flows and global risk appetite,” Banerjee said.
Global uncertainty
Pabari said that in the current environment, much of the global uncertainty appears to be largely priced in the rupee. From these levels, a phase of consolidation – or even a partial reversal – in both the rupee and domestic equity markets cannot be ruled out.
Strong resistance is seen around 92.00, while continued RBI intervention could help USD/INR return to the 90.50-90.70 zone in the near term, according to his assessment.
Published on January 21, 2026
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