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- Rupees All Time Low Vs Dollar; INR USD Exchange Rate 2026 | Trump Tariff
Mumbai49 minutes ago
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The Indian rupee reached an all-time low of 91 against the dollar on Tuesday. Today the rupee opened at 90.93 against the dollar and fell to a record low of 91.01 during the day’s trade. This decline in the rupee is being seen due to continuous selling by foreign investors (FPIs) and increasing trade tensions at the global level.
The rupee has been under pressure since the beginning of 2026. Last year, in December 2025, the rupee had crossed the 90 level for the first time. Now within just 20 days it has crossed the level of 91. Market experts believe that due to US President Donald Trump’s new tariff policies and global tension, investors around the world are increasing investments in gold and dollars.
Three big reasons for the fall of rupee
- Withdrawal of foreign investors from the market: Foreign investors (FPIs) are continuously withdrawing their money from the Indian stock market. In the first 20 days of January 2026 alone, they have sold ₹29,315 crore. When these investors withdraw their money, they demand dollars in exchange for rupees. Due to increase in demand for dollar, its price increases and rupee falls.
- Trump’s tariff policies and global tensionsThere is an atmosphere of uncertainty in the markets around the world due to US President Donald Trump’s threat to impose new taxes (tariffs) on European countries and the ‘Greenland’ dispute. In times of such fear, investors start moving their money out of developing countries like India and investing it in US dollars or gold, which are considered safe, due to which the dollar is becoming stronger.
- Strong US economy and high interest rates: The unemployment rate in America has decreased and the economy there looks strong. Because of this, investors around the world feel that interest rates in America will remain high. In the greed of higher profits, investors are putting their money in American banks and bonds, due to which the dollar has increased in strength all over the world.
Eye fixed on the decision of the US Supreme Court
Today on January 20, the US Supreme Court is going to give a big decision. The decision will be based on the legality of Trump’s tariffs. If the court rules in Trump’s favor, the global trade war may intensify. At the same time, if the court declares it illegal, then the market may get some relief.
Rupee may fall to 92
Amit Pabari, Managing Director, CR Forex Advisors, says that if the rupee crosses the level of 91.07, it may soon reach the range of 91.70 to 92.00. However, the Reserve Bank of India (RBI) is intervening in the market from time to time so that the rupee does not fall too much suddenly. At present, the level of 90.30 to 90.50 can act as a strong support for the rupee.
Import will become expensive due to fall in rupee
Fall in rupee means that import of goods is going to become expensive for India. Apart from this, traveling and studying abroad has also become expensive.
Suppose when the value of rupee was 50 against the dollar, then Indian students in America could get 1 dollar for 50 rupees. Now for 1 dollar students will have to spend 91 rupees. Due to this, everything from fees to accommodation, food and other things will become expensive for the students.
How is the value of currency determined?
If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. In English it is called currency depreciation.
Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollar in India’s foreign reserves is equal to the rupee reserves of America, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen.
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