Wednesday 21 / January / 2026
Muscat: The Indian rupee plunged to an all-time low on Wednesday, weakening sharply against the US dollar and nearing the 238-mark against the Omani rial at exchange houses in the Sultanate.
The rupee closed at $91.69 against the US dollar on Wednesday, after touching an intra-day low of $91.74. On Tuesday, the currency had settled at $90.97 per dollar.
In Oman, exchange houses were offering rates of around $237.20 to $237.60 for one Omani rial, reflecting the sustained weakness of the Indian currency.
Speaking to Times of Oman, Muscat-based financial expert R. Madhusoodanan said the rupee experienced significant volatility during the trading session, driven by a combination of domestic and international factors.
On the global front, Madhusoodanan pointed to rising geopolitical tensions and heightened risk aversion linked to the Greenland issue.
“The global investment community is moving funds away from risk assets towards safe-haven instruments such as gold,” he said, noting that gold prices touched an all-time high on Wednesday.
Domestically, persistent foreign portfolio investor (FPI) outflows from Indian equity markets have added pressure on the rupee. The delay in concluding a trade agreement with the United States has further weighed on market sentiment.
He also noted that increased demand for dollars from metal importers contributed to the currency’s decline.
Although foreign capital inflows remain below expectations, the Reserve Bank of India (RBI) continues to maintain a strong buffer, with foreign exchange reserves standing at around USD 687 billion. “The RBI has been actively intervening in the market to curb excessive volatility,” Madhusoodanan said.
Despite the rupee’s weakness — particularly during the second half of 2025 — India’s current account deficit (CAD) remains at manageable levels, although it widened in December 2025.
The rupee depreciated by around 5 per cent during 2025 and has already fallen by nearly 2 per cent in January 2026, making it Asia’s worst-performing currency so far this year, he added.
Looking ahead, Madhusoodanan said the rupee is likely to remain vulnerable amid ongoing global uncertainties and continued FPI outflows. “Concluding the trade agreement with the United States could provide some relief,” he said.
He expects continued volatility during February and March, though the Indian Union Budget, expected in the first week of February 2026, could offer support and direction to both markets and the currency.
“FDI-friendly budget announcements would be positive for the rupee, while strong RBI intervention through dollar sales will remain a key determining factor,” he said.
