New Delhi |  27 January 2026

The Indian rupee recovered from its record low and gained 19 paise to close at 91.71 (provisional) against the US dollar on Tuesday, January 27, 2026. The recovery came as the US dollar weakened globally and positive sentiment grew after the conclusion of the India-EU Free Trade Agreement (FTA) talks. Forex traders said the rupee saw support as investors rushed to cover positions amid broad dollar weakness.

In early trade, the rupee opened at 91.82 at the interbank foreign exchange market and slipped further to touch an intra-day low of 91.90 against the dollar. However, it later gained momentum and settled higher for the day. On Friday, January 23, the rupee had hit its all-time low of 92 per dollar before closing at 91.90. Markets remained closed on Monday due to the Republic Day holiday.

Market experts believe the India-EU trade deal played a key role in improving domestic sentiment. “We expect the rupee to trade with a slight positive bias as India-EU FTA may boost domestic market sentiments. Weakness in the U.S. dollar index may further support the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. However, he cautioned that foreign fund outflows and global geopolitical tensions could limit further gains. He also added, “USD/INR spot price is expected to trade in a range of 91.30 to 92.”

Meanwhile, the US dollar index, which tracks the greenback against six major currencies, was down 0.02% at 97.01. Brent crude oil prices edged up slightly by 0.02% to trade at $65.60 per barrel, which capped sharp gains in the rupee. In the equity markets, the Sensex rose 319.78 points to close at 81,857.48, while the Nifty climbed 126.75 points to settle at 25,175.40. Foreign institutional investors sold equities worth ₹4,113.38 crore on Friday, adding pressure on the currency.

On the macroeconomic front, India and the European Union formally announced the conclusion of the long-pending FTA, described as the “mother of all deals”, which will create a combined market of nearly two billion people. At the same time, India’s foreign exchange reserves saw a sharp rise of $14.167 billion to reach $701.36 billion for the week ending January 16, according to the RBI. The strong reserve position is expected to provide stability to the rupee in the coming weeks.

 Rupee Gains Strength After Hitting Record Low, Ends Day Higher at 91.71

The Indian rupee bounced back from its all-time low and closed 19 paise stronger at 91.71 against the US dollar on Tuesday, January 27, 2026. The recovery was supported by weakness in the US dollar and positive market mood after the India-EU Free Trade Agreement talks were wrapped up. Traders said the rupee gained as investors moved quickly to cover positions amid global dollar softness.

During the day, the rupee opened at 91.82 in the interbank market and slipped to an intra-day low of 91.90 before recovering. Last Friday, it had touched a historic low of 92 per dollar. Markets were shut on Monday due to the Republic Day holiday, which limited trading activity earlier in the week.

Market experts said the India-EU deal lifted confidence. “We expect the rupee to trade with a slight positive bias as India-EU FTA may boost domestic market sentiments. Weakness in the U.S. dollar index may further support the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. He also warned that foreign investor selling and global tensions could put pressure, adding, “USD/INR spot price is expected to trade in a range of 91.30 to 92.”

Meanwhile, the India-EU trade agreement, described as the “mother of all deals”, is expected to support several domestic sectors. The dollar index slipped slightly, while crude oil prices remained firm. Indian equity markets ended higher, and the country’s foreign exchange reserves jumped sharply to over $701 billion, giving the rupee a stronger base going forward.