The Indian rupee has recently fallen to a new low compared to the US dollar. On January 20, 2026, the value of the rupee opened at 90.93. During that day, it briefly touched 91.01. This means that the rupee is weaker or less valuable when exchanged for US dollars than it was before.

When we talk about the rupee reaching this level, it is important to understand what it means. A lower or weaker rupee makes it more expensive to buy foreign currencies, such as the US dollar. This change can also affect how much Indian goods and services cost to people outside India, and how much it costs to buy foreign products inside India.

Key Highlights

  • On January 20, 2026, the rupee crossed the important level of 91 per US dollar. This is considered a significant point because such levels can influence market behavior and investor confidence.
  • The decline in the rupee was mainly caused by investor actions and global economic factors. Specifically, foreign portfolio investors – those who invest money in Indian stocks and bonds – sold a lot of their holdings. Their selling can cause the rupee to go down because it increases the supply of dollars in the market.
  • Around the same time, there are uncertainties in global trade. When international trade is uncertain, investors tend to become cautious. They may withdraw their investments or prefer safer assets, which can also cause the local currency to weaken.

Background and Past Trends

The rupee’s weakness is not new. In December 2025, the rupee also fell below the 91 mark. On December 16, 2025, it closed at 91.03. This shows that the currency has been under pressure for some time and has experienced multiple dips in its value over recent months.

Reasons for the Weakening Rupee

The Finance Ministry has explained that several factors are responsible for the rupee’s decline:

  • A widening trade deficit: This means India is importing more goods and services than it exports. When the country needs more foreign currency to pay for imports, the demand for US dollars increases. As a result, the rupee tends to weaken.
  • A strong US dollar: When the US dollar becomes strong compared to other currencies, it puts pressure on currencies like the rupee. Investors prefer holding US dollars, which makes the dollar stronger and the rupee weaker.
  • Weak capital inflows: Capital inflows refer to investments coming into India, such as foreign investment in stocks, bonds, or businesses. When these inflows slow down or decrease, there is less demand for the rupee, and its value drops.

Current Situation

As of now, there is no official confirmation that the rupee has again crossed the 91 mark in January 2026, but the signs show that the currency remains weak and continues to depreciate. Market watchers and financial experts are keeping a close eye on the currency’s movements.

Why This Matters

A weaker rupee affects many parts of the economy:

  • Imports become more expensive: Goods brought from other countries, like oil, machinery, and electronics, cost more. This can lead to higher prices for consumers and businesses.
  • Exports can become more competitive: On the other hand, a weaker rupee can make Indian goods and services cheaper for other countries, potentially boosting exports over time.
  • Inflation might rise: As the cost of imported goods increases, prices for everyday products may also go up. This can make life more expensive for common people.
  • Government and experts are watching: They analyze these changes carefully because continuous currency depreciation can affect economic stability and the country’s overall financial health.

Important Dates / Numbers

  • December 16, 2025: The rupee closed at 91.03.
  • January 20, 2026: The rupee opened at 90.93, with a brief dip to 91.01 during the day.
  • At present, there is no official statement confirming that the rupee again crossed the 91 mark in January 2026, but the trend shows ongoing weakening.

Official Position

The Finance Ministry has provided a reason for the gradual decline of the rupee. They say that external factors like the trade deficit and the strength of the US dollar are affecting the currency’s value. However, they have not issued a specific statement confirming that the rupee has again broken through the 91 level after January 20.

In summary, the recent decline of the rupee against the US dollar indicates that the Indian currency is facing some challenges due to international economic conditions and trade issues. The government and financial advisors will continue to monitor these movements because currency strength affects many aspects of India’s economy and the daily lives of its people.