INR vs USD: Rupee Hits Record Low of 92 as Dollar Strengthens After Fed Decision
The Indian rupee slipped to a fresh all-time low of 92.00 against the US dollar in early trade on Thursday, tracking broad weakness across Asian currencies and a recovery in the American currency following the US Federal Reserve’s latest policy decision.
The rupee opened at 91.99 per dollar, weaker than its previous close of 91.78, as the US dollar index rebounded from multi-year lows. The greenback gained after the Federal Reserve kept interest rates unchanged while acknowledging that inflation remains elevated and the US labour market continues to show signs of stabilisation. Rising US Treasury yields further supported the dollar.
Persistent foreign capital outflows, heightened geopolitical uncertainty, and increased risk aversion continued to weigh on emerging market currencies, pushing the rupee to record low levels. The dollar index, which tracks the US currency against a basket of six major peers, was trading 0.29% lower at 96.16.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, the 92.00 level is a crucial psychological mark for the rupee, where intervention by the Reserve Bank of India could be expected.
On the domestic front, Finance Minister Nirmala Sitharaman is scheduled to table the Economic Survey 2025–26 in Parliament today, ahead of the Union Budget presentation on February 1, keeping market participants cautious.
Indian equity markets also traded lower amid weak global cues and continued selling by foreign institutional investors. The Sensex declined 413.40 points, or 0.50%, to 81,931.28, while the Nifty 50 slipped 122.35 points, or 0.48%, to 25,220.40.
Adding to the pressure on the rupee, crude oil prices edged higher. Brent crude rose 1.32% to $69.30 per barrel, while US West Texas Intermediate (WTI) crude gained 1.38% to $64.08.
Rupee Outlook
Amit Pabari, Managing Director at CR Forex Advisors, said sustained capital outflows have kept dollar demand elevated.
He noted that a decisive move above the 92.00 level could push USD/INR toward the 92.20–92.50 range. However, potential RBI intervention and a relatively softer dollar environment could limit further depreciation and help the rupee move back toward the 91.00–91.20 zone.
Meanwhile, Jigar Trivedi highlighted immediate support for the rupee near 91.70, with resistance seen around 92.20 beyond the record levels.
Ponmudi R, CEO of Enrich Money, said the broader trend for USD/INR remains positive, supported by policy divergence, continued foreign portfolio outflows, and global macroeconomic uncertainty.
“As long as the pair sustains above the 91.90–92.10 range, the positive bias is likely to remain intact, with gradual upside potential toward 92.50 and beyond in the coming weeks,” he said.
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