Market Brief: Rupee Under Pressure The Indian Rupee faced significant volatility this week, culminating in a sharp decline that saw the currency settle at **90.99** against the US Dollar on Friday, February 20, 2026. This move represents the steepest weekly fall in a month, as the currency struggled to maintain its footing near the psychologically important **91.00** mark. A primary driver of this depreciation has been a massive surge in capital outflows. Recent data confirms that foreign investors repatriated a record **$7.45 billion** in a single month, the highest on record. While gross inflows remain healthy, the net effect of these repatriations—driven by profit-taking and shifting global strategies—has placed heavy selling pressure on the domestic unit. Strategic Reserve Buffers Despite the currency's slide, India's external sector remains resilient. The Reserve Bank of India (RBI) reported that foreign exchange reserves jumped by **$8.66 billion** to reach an all-time high of **$725.73 billion** for the week ending February 13. This record-high war chest has allowed the central bank to intervene actively. Traders report that the RBI has been selling dollars in both spot and forward markets to prevent the Rupee from breaching the **91.20** level. Historical data reveals the central bank sold over **$10 billion** in a recent monthly cycle to curb similar volatility. Global Drivers and Trade Impact The strength of the US Dollar Index, which recently climbed toward **98.00**, remains a major headwind. Higher-than-expected US inflation data and a hawkish stance from the Federal Reserve have revitalized the greenback, drawing liquidity away from emerging markets. Geopolitical tensions, particularly in the Middle East and surrounding oil-producing regions, have further soured investor appetite. Rising crude oil prices are a critical concern for India, as they widen the trade deficit, which recently hit a three-month high of **$34.68 billion**. Sectoral Trends Market sentiment is currently split across different sectors. Foreign Portfolio Investors (FPIs) dumped nearly **₹11,000 crore** in Indian IT stocks during the first half of February, fueled by concerns over technological disruptions. However, a recent interim trade deal between India and the United States has provided a silver lining. The removal of certain penal tariffs and a reduction in reciprocal duties to **18%** have encouraged over **$2 billion** in new equity purchases this month, acting as a partial counterweight to the broader sell-off.