**MARKET BRIEF: RUPEE AT HISTORIC LOW** **Currency Performance** The Indian rupee (INR) concluded January 2026 on a fragile note, hitting a historic low of **91.99** against the US dollar during Friday’s session. The local unit eventually settled at **91.98**, marking its worst monthly performance since **September 2022**. **Key Drivers** The depreciation was primarily fueled by relentless foreign capital outflows, with foreign investors selling approximately **$4 billion** in Indian equities throughout January. This selling pressure was compounded by strong month-end corporate demand for dollars and heightened global risk aversion, despite a recent dip in Brent crude oil prices to roughly **$69.62** per barrel. **Central Bank Action** The Reserve Bank of India (RBI) actively intervened in the foreign exchange market to prevent the currency from breaching the psychologically critical **92** mark. Dealers report that state-run banks were selling dollars likely on behalf of the central bank to curb volatility and cap the rupee's decline. **US Federal Reserve Update** In a significant global development, US President Donald Trump announced the nomination of **Kevin Warsh** as the next Chairman of the Federal Reserve on Friday, January 30. This follows the Federal Open Market Committee's (FOMC) decision earlier in the week to keep benchmark interest rates unchanged at **3.50–3.75%**. **Outlook: Union Budget** Market focus now shifts entirely to the Union Budget 2026-27, scheduled for presentation on **February 1**. Investors are awaiting fiscal signals that could influence capital flows and offer support to the domestic currency. ***