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Mumbai: The rupee depreciated 61 paise to an all-time low of 91.58 against the American currency in intraday trade on Wednesday, weighed down by persistent foreign fund outflows amid a cautious global mood.
Forex traders said heightened tensions with Europe over the Greenland issue and potential tariffs have led investors to adopt a cautious stance.
Moreover, a negative trend in the domestic market further dented investor sentiments.
At the interbank foreign exchange, the rupee opened at 91.05 and lost ground to trade at an all-time low of 91.58 against the greenback, down 61 paise from its previous close.
On Tuesday, the rupee depreciated 7 paise to close at a record low of 90.97 against the US dollar.
On December 16, 2025, the rupee reached its previous lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.
"Donald Trump's Greenland threats are shaking some of the established global order that has underpinned economic and defence cooperation between major economies/allies over the last several decades.
"Geopolitics is by far having a greater impact on asset price movement than any particular data point," IFA Global said in a research note.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.08 per cent lower at 98.56.
Brent crude, the global oil benchmark, was trading 1.11 per cent lower at USD 64.20 per barrel in futures trade.
On the domestic equity market front, Sensex was trading 266.58 points lower at 81,913.89, while Nifty declined 83.10 points to 25,149.40.
Foreign institutional investors offloaded equities worth Rs 2,938.33 crore on Tuesday, according to exchange data.