Rupee Records Worst Month in Three Years
The Indian rupee has logged its worst monthly performance in three years, weakening sharply against the US dollar during January. Persistent pressure from foreign fund outflows and strong dollar demand pushed the currency close to record lows.
RBI Steps In to Defend Key Level
The rupee slipped near the ₹92 per dollar mark during the month, prompting intervention by the Reserve Bank of India (RBI). Market participants said the central bank sold dollars in the forex market to prevent the currency from breaching the psychologically important level.
Factors Behind the Fall
Analysts attributed the rupee’s weakness to sustained foreign portfolio investor selling, higher import-related dollar demand and a strong US dollar globally. Uncertainty around global growth and upcoming domestic policy announcements also weighed on sentiment.
Outlook Remains Cautious
Currency experts said the rupee could remain volatile in the near term, with movements linked to global risk appetite, crude oil prices and capital flows. The market is also closely watching fiscal signals and further RBI actions for cues on currency stability.
