A historic fall in the rupee was seen on Wednesday.
The impact of US President Donald Trump’s ‘Greenland insistence’ is not being seen only on NATO or European countries. In fact, its havoc is also being seen on the Indian rupee. The biggest fall of the rupee in the year 2026 was seen on Wednesday. Due to which the value of one dollar in India has come down to Rs 91.73. This means that there has been a huge fall of 76 paise in the rupee against the dollar.
Earlier, the level of Rs 91 was seen in December. But the way Trump is carrying forward his tariff policy, the currencies of emerging markets are suffering the biggest loss. On the other hand, selling by foreign investors is also hurting the rupee. Besides, there is a continuous increase in demand for dollars from local traders. Let us also tell you what kind of figures are being seen in the currency market against the dollar.
The biggest fall in rupee
The rupee on Wednesday fell 76 paise to close at a lifetime low of 91.73 (provisional) against the US dollar amid rising uncertainty and risk aversion in global markets, pressured by continued foreign investment withdrawals. Foreign currency traders say that the reason for this decline is increasing geopolitical uncertainty. He also said that rising tensions in Europe over the Greenland issue and possible tariffs and negative trends in the domestic market have further weakened investor confidence.
At the interbank foreign exchange market, the rupee opened at 91.05 and fell to a low of 91.74 against the US dollar during the day. The domestic currency ended the day at an all-time low of 91.73 (provisional), registering a fall of 76 paise from its previous close. On Tuesday, the rupee fell 7 paise and closed at 90.97 against the US dollar. The rupee had recorded its previous all-time low of 91.14 on December 2025 and has fallen by 1.50 per cent so far this month.
Fall from dollar index to market
- Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.02 per cent lower at 98.61.
- There has been a decline in Middle East oil in the international market. If we look at the data, Brent crude oil was trading at US $ 63.70 per barrel, falling by 1.88 percent.
- Talking about the domestic stock market, Sensex fell by 270.84 points and closed at 81,909.63, while Nifty fell by 75 points at 25,157.50.
- According to exchange data, foreign institutional investors sold shares worth Rs 2,938.33 crore on Tuesday. In the current month, foreign investors have withdrawn Rs 30,345 from the stock market.
Why is the decline coming?
Abhishek Bisson, head of fixed income, Kotak Mahindra AMC, said that emerging economies like India are facing the pressure of unstable capital flows. He further said that geopolitical tensions, including the Greenland dispute that has strained US-Europe relations (which threatens the breakup of NATO) and US control of Venezuelan oil reserves, are having a wide-ranging impact on global trade.
Bisson also said that the pending trade agreement with the US remains an important stability factor for India, as its completion can boost confidence and bilateral trade.
He said that the rupee will remain sensitive to external shocks until geopolitical risks subside and a trade agreement is reached. However, given the strong forex reserves, the Reserve Bank of India can handle the situation as the depreciation has made the rupee relatively cheaper on REER basis, which will boost exports.