Indian rupee dips to 90.8450 vs dollar amid $2.5B stock outflows and strong dollar demand.

The Indian rupee weakened slightly to 90.8450 against the dollar on Monday amid sustained foreign portfolio outflows, with investors pulling over $2.5 billion from Indian stocks in January. Corporate demand for dollars and limited supply weighed on the currency, while exporters held back from selling dollars. A broader decline in the U.S. dollar—driven by trade tensions over Greenland and potential tariffs on Europe—provided temporary support. Forward premiums rose, signaling expectations of higher interest rate risk and continued downward pressure on the rupee, which approached its all-time low of 91.0750.