Rupee slips to new low at 91.7 against dollar as Greenland pits Europe against Trump

The rupee plunged 67 paise to close at an all-time low of 91.64 (provisional) against the American currency on Wednesday, pressured by persistent foreign fund outflow amid heightened uncertainty and risk-off sentiment in global markets.

The rupee recorded its previous all-time low of 91.14 on December 16, 2025, and so far this month, the local unit has fallen by 1.50 per cent, forex traders said, adding that the depreciation can be attributed to heightened geopolitical uncertainty.

Rising tensions in Europe over the Greenland issue and potential tariffs, along with a negative trend in the domestic market, further dented investor sentiment, they said.

More from Business

From Greenland to Venezuela: Trump moves spark chaos at home and abroad as voters prepare for midterms Taming Trump: Why India-EU trade deal matters strategically too

At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to touch an intraday low of 91.74 against the greenback. The domestic unit settled for the day at an all-time low of 91.64 (provisional), registering a decline of 67 paise from its previous close.

According to Dilip Parmar, Research Analyst, HDFC Securities, this is the biggest single day fall after November 21, 2025 On Tuesday, the rupee depreciated 7 paise to close at 90.97 against the US dollar.

”Emerging economies like India are facing pressure from volatile capital flows,” Abhishek Bisen, Head-Fixed Income, Kotak Mahindra AMC, said.

Besides, geopolitical tensions, including the Greenland dispute that has strained US-Europe relations (which is a risk of NATO breakdown) and also the control of Venezuela’s oil reserves by the US, are creating ripple effects across the global trade, he said.

Quick Reads

View All

Gold surges past $4,800 as Trump’s Greenland push rattles markets, fuels safe-haven rush

UK, China to revive ‘golden era’ business ties during Starmer visit

Bisen further noted that for India, the pending trade agreement with the US remains a key stabilising factor, as its conclusion could boost confidence and bilateral commerce.

”Also, until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks. However, given the strong forex reserves, the Reserve Bank of India can manage the situation as the depreciation has made INR relatively cheaper on REER basis, which shall help shore up exports,” he said.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 98.61.

Brent crude, the global oil benchmark, was trading 1.88 per cent down at USD 63.70 per barrel in futures trade.

”The currency remains under severe pressure from heightening global geopolitical uncertainties. The pace of this depreciation has been so aggressive that intermittent central bank interventions have struggled to provide a meaningful floor,” HDFC Securities’ Parmar said.

On the domestic equity market front, Sensex declined 270.84 points to settle at 81,909.63, while the Nifty dropped 75 points to 25,157.50.

Foreign institutional investors offloaded equities worth Rs 2,938.33 crore on Tuesday, according to exchange data.

(Except for the headline, this story has not been edited by Firstpost staff.)