The Indian rupee opened lower on Thursday (January 29), trading near the 92-per-dollar mark for the first time, amid a broad rally in the US dollar and weakness across Asian currencies, reported Indian media.
At the open, the Indian rupee slipped to 91.99 against the greenback, topping its previous all-time low of 91.96 set last week.
Traders say weak capital inflows and heightened market anxiety are weighing on the currency.
A Singapore-based hedge fund manager noted, “The market is pre-empting expected NDF maturities, and it’s possible a round of stop-losses has been triggered.”
The key question for markets now is whether the Reserve Bank of India (RBI) will intervene if the rupee crosses the 92 mark, or allow it to adjust further.
The US dollar has gained support from a recovery in Treasury yields, which rose after the Federal Reserve indicated inflation remains elevated and the labour market continues to stabilise.
The rupee’s slide mirrors a broader trend in Asia, where currencies across the region are under pressure from rising US yields. Investors remain cautious, balancing domestic flows with global macroeconomic signals.
Experts said the Indian rupee looks set to weaken past 92 per US dollar for the first time, with offshore pricing pointing to an open around 92.02–92.08.
This drop is being driven more by offshore dollar demand than by onshore trading: the 1-month forward kept climbing after India’s cash market shut, signalling the pressure didn’t fade.