Rupee Hits Record Low of 91.93 Against Dollar: Two Key Reasons for Decline

• The Rupee depreciated to a record low of 91.93 against the US Dollar on January 23, driven by strong Dollar demand from companies and importers.
• Continuous selling by foreign institutional investors (FIIs) and Dollar purchases by importers are identified as primary reasons for the Rupee's decline.
• Geopolitical risks and the absence of a trade deal with the US are contributing to the sustained pressure on the Indian currency.
• Experts suggest that RBI intervention could help the Rupee recover to the 90.50-90.70 range, with 92.00 acting as a strong resistance level.
• The Rupee's weakness negatively impacts importers, international travelers, and those studying or seeking medical treatment abroad, but benefits exporters.

Why It Matters: The Rupee hit a record low against the Dollar due to FII selling and importer demand, with potential RBI intervention for recovery.