US tariff fears, capital flight drag rupee to new low

Mumbai: The rupee plunged 67 paise to close at an all-time low of 91.64 (provisional) against the American currency on Wednesday, pressured by persistent foreign fund outflow amid heightened uncertainty and risk-off sentiment in global markets. The rupee recorded its previous all-time low of 91.14 on December 16, 2025, and so far this month, the local unit has fallen by 1.50 per cent, forex traders said.

Rising tensions in Europe over the Greenland issue and potential tariffs, along with a negative trend in the domestic market, dented investor sentiment. At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to touch an intraday low of 91.74 against the greenback. The domestic unit settled for the day at an all-time low of 91.64 (provisional), registering a decline of 67 paise from its previous close. According to Dilip Parmar, Research Analyst, HDFC Securities, this is the biggest single day fall after November 21, 2025 On Tuesday, the rupee depreciated 7 paise to close at 90.97 against the dollar. “Emerging economies like India are facing pressure from volatile capital flows,” Abhishek Bisen, Head-Fixed Income, Kotak Mahindra AMC, said. Besides, geopolitical tensions, including the Greenland dispute that has strained US-Europe relations and the control of Venezuela’s oil reserves by the US, are creating ripple effects across the global trade, he said.