The Indian Rupee (INR) plunged to a fresh all-time low of 92.00 against the US Dollar (USD) during early trade on Thursday, 29 January 2026.
This historic slide was triggered by persistent foreign capital outflows, month-end dollar demand from importers, and heightened geopolitical uncertainty.
While the Reserve Bank of India (RBI) reportedly intervened to prevent a breach past the psychologically significant 92 mark, the currency remains under pressure as US Treasury yields rise following the Federal Reserve’s decision to keep rates unchanged.
Despite the depreciation, India’s domestic economy showed resilience with GDP growth hitting 8.2% in the September quarter and industrial production reaching a two-year high of 7.8%.
Economic Survey
The decline of the Rupee coincided with the tabling of the Economic Survey 2025-26 in Parliament by Finance Minister Nirmala Sitharaman on Thursday. The survey argued that the current valuation does not accurately reflect India’s “stellar economic fundamentals,” noting that the Rupee is “punching below its weight.”
Interestingly, the document suggested that an undervalued currency might not be entirely detrimental at this juncture, as it helps offset the impact of steep US tariffs recently imposed on Indian exports.
However, the survey also flagged concerns over the “capital drain” as foreign portfolio investors (FPIs) continue to pull funds from emerging markets in favour of safe-haven assets in the United States.
Market Pressures
The currency’s fall to 92 per dollar is beginning to pinch the wallets of ordinary citizens, as India remains heavily dependent on imports for nearly 85% of its crude oil needs. With Brent crude trading near $70 a barrel and the dollar strengthening, the cost of petrol, diesel, and aviation fuel is expected to climb.
Beyond energy, the depreciation makes electronic goods, household appliances, and overseas education significantly more expensive. Akshat Garg, Head of Research at Choice Wealth, observed that “persistent dollar strength and elevated US bond yields” have kept emerging market currencies under stress.
He added that while the RBI has ample reserves to manage volatility, it is unlikely to defend any specific level unless market conditions become disorderly.
The Logical Indian’s Perspective
At The Logical Indian, we believe that behind every decimal point in a currency exchange rate lies a real human impact. A weaker Rupee is not just a headline for stock traders; it is a weight on the middle-class family paying for a child’s foreign degree or the consumer facing “imported inflation” on everyday essentials.
While the Economic Survey suggests a weaker Rupee might help our exporters, we must ensure that this does not come at the cost of the common citizen’s purchasing power. True economic strength lies in a stable currency backed by self-reliance.
News in Q&A
1. Why did the Rupee hit 92 against the US Dollar? The slide was driven by a “perfect storm” of rising US bond yields, sustained selling by foreign investors, and high demand for dollars from Indian importers to settle month-end bills.
2. What did the government say about this in the Economic Survey? The Economic Survey 2025-26 stated that the Rupee is “punching below its weight” and that its current low value does not reflect the strong 8.2% GDP growth India is witnessing.
3. Is a weaker Rupee actually good for India? According to the government, a slightly undervalued Rupee helps Indian exporters stay competitive abroad, especially after the recent imposition of high tariffs by the United States.
4. How does this impact your daily expenses? A weaker currency makes imports like crude oil and electronics more expensive, which can lead to higher petrol prices and increased costs for mobile phones and laptops.
5. Is the Reserve Bank of India (RBI) stepping in? Yes, traders report that the RBI has been active in the market, selling dollars to ensure the Rupee does not crash uncontrollably past the 92 mark.
