The Indian Rupee (INR) extended its losing streak for a fourth consecutive session on Monday, January 19, 2026, closing at 90.91 against the US dollar. This marks its lowest closing level since December 16, 2025. The primary catalyst for this sustained depreciation was robust corporate dollar buying, exacerbated by a persistent shortfall in dollar supply within the domestic market. Despite an initial appreciation in early trade to 90.64 against the US dollar, supported by a weakening greenback amid global tensions, the rupee could not sustain its gains. It later reversed course, falling to an intraday low of 91.01. Traders also noted mild intervention by the Reserve Bank of India (RBI) to prevent a steeper fall. Beyond corporate demand, significant foreign institutional investor (FII) outflows from Indian equities further dampened sentiment. Foreign investors have withdrawn over $2.5 billion from Indian stocks in January alone, indicating risk aversion among global portfolio managers. Global geopolitical factors, such as mounting tensions over Greenland and threats of US tariffs on European nations, contributed to broader risk-off sentiment, traditionally unfavorable for emerging market currencies like the rupee. Analysts suggest that the rupee has breached key psychological support levels between 90.30 and 90.50, with the all-time high of 91.0750 now being the next critical level to monitor. The currency's inability to maintain early advances underscores a fragile balance in the forex market, where any recovery is swiftly offset by persistent dollar demand and limited supply, signalling continued volatility.