The Indian rupee hit a lifetime low on Friday, with a selloff in local equities adding to ongoing pressure from dollar outflows, importer payments and speculative flows.
The rupee slid to an all-time low of 91.95 per U.S. dollar and is now down more than 1% this week, weighed down by demand from bullion and other importers, speculative dollar buying by offshore players and foreign outflows from equities.
Foreign investors have pulled out about $3.5 billion from Indian equities so far this month, pushing the Nifty 50 down nearly 5% in January. The selling has intensified this week, with the index down more than 3%, reinforcing pressure on the rupee.
The rupee has fallen more than 2% in January, adding to its 5% slide in 2025.
Economists say that capital flows remain a key vulnerability for the currency. Portfolio equity outflows hit a record $18.9 billion last year and inflows through external commercial borrowings have been muted.
The Reserve Bank of India has intervened repeatedly to support the rupee and curb the pace of its decline, according to market participants.
