Rupee hits all-time low of 91.20 against US dollar:Experts cite relentless FPIs selling rising global trade tensions as major reasons

The Indian rupee fell 23 paise to all-time low of 91.20 against the US dollar on Wednesday, pressured by sustained selling from foreign portfolio investors (FPIs) and rising global trade tensions. The rupee has remained under stress since the beginning of 2026. In December 2025, it breached the 90-per-dollar mark for the first time. Market experts attribute this weakness to renewed tariff threats by US President Donald Trump and escalating global uncertainty, prompting investors worldwide to move funds into safe-haven assets such as the US dollar and gold. Key reasons behind the rupee’s decline 1. Heavy foreign investor outflows Foreign portfolio investors have been consistently pulling money out of Indian equities. In the first 20 days of January 2026 alone, FPIs sold shares worth ₹29,315 crore. As these investors convert rupees into dollars while exiting, demand for the dollar rises, strengthening it and weakening the rupee. 2. Trump’s tariff policies and rising global uncertainty Fresh tariff threats by US President Donald Trump against European nations, along with geopolitical tensions such as the Greenland dispute, have increased global market uncertainty. During such risk-off phases, investors typically withdraw money from emerging markets like India and shift towards safer assets such as the dollar and gold, further pressuring the rupee. (This is a developing news)