Rupee Near Record Low at 91, Traders Spot Dollar Selling

Rupee slipped close to its December record low on January 20, 2026. Traders spotted fresh dollars selling near 91 to slow declines in early trade. 

India’s currency stayed under pressure on Tuesday as strong demand for dollars kept nudging USD/INR higher. In morning trade, the rupee was around 90.99 per $1 after touching 91.0525 intraday, with the December 16, 2025 low of 91.0750 back in focus. 

Traders told Reuters that state-run banks were offering dollars near 91 in limited size, a pattern often linked to central bank smoothing. Other Asian units were mixed and the dollar index dipped to a weekly low, but risk-off cues still hung over markets on screens. 

Why The Rupee Is Under Fresh Pressure?

The immediate issue is flow-led dollar demand at the interbank market. Dealers cited client buying and hedging needs, which kept the pair firm even when the broader dollar softened. 

Reuters noted the rupee has fallen about 1% across the last 5 sessions, and it slipped past 91 for the first time in a month, putting the December low back in play. Domestic import demand, especially from metals, and foreign fund outflows were also cited by local media as near-term drags. 

What Happened In Tuesday’s Trade?

On January 20, traders tracked the rupee at 90.99 per $1 around 11:00 am IST after an intraday dip to 91.0525, Reuters reported. Dealing desks said state-run banks were offering dollars around the 91 zone, but in light volumes, suggesting a steady hand rather than a big defence. 

Reuters added that USD/INR strength has been supported by offshore hedging and one-way client flows. The December 16, 2025 low of 91.0750 remains the key line for dealers. 

Here are the numbers traders were tracking through the session.
 

Read more on why the RBI is likely selling dollars to curb the rupee’s slide.

The rupee showed tentative stabilisation with light dollar selling by state-run banks helping limit losses near the 91 level. However, persistent offshore hedging demand kept pressure intact, leaving traders cautious near the key 91.0750 reference.  

Earlier Moves That Set Up This Week

The slide gathered pace in mid-December. On December 16, 2025, Reuters said the rupee fell 0.3% to a new record low of 91.0750 and ended near 91.0275, with hedging demand and portfolio outflows weighing. Reuters flagged the rupee down over 6% in 2025. A day later, Reuters reported a sharp rebound, with the rupee closing around 90.38 after stronger dollar selling was seen early in the session. 

In the new year, the same pattern returned. Economic Times BFSI reported on January 2, 2026 that the rupee found support near 90 as state-run banks sold dollars. LoansJagat’s explainer dated December 19, 2025 also tracked the slide toward ₹91.1 and tied it to importer costs and nervous positioning in the market. 

What Stakeholders Have Said So Far?

Traders told Reuters they saw dollar offers through state-run banks near 91, but volumes were small. Bankers said the December low around 91.0750 is the level everyone is watching. DBS said the Greenland-linked U.S.-EU friction could complicate trade ties and keep risk appetite weak in coming sessions. 

Conclusion

USD/INR is again brushing the December extremes, with flow demand setting the tone. The 91 zone and the pace of dollar offers will stay in focus.