Rupee Recovers to 91.50 as Trump Scraps Europe Tariffs; Sensex Jumps 500+ Points on Davos Relief

It’s Thursday, January 22, 2026, and the Rupee is finally catching its breath. After a brutal Wednesday where it tanked to a record low of 91.65, the local currency clawed back 15 paise this morning to trade at 91.50 against the Greenback.¹

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The thing is, we can thank the “Davos Pivot.” Donald Trump took the stage at the World Economic Forum yesterday and basically told Europe, “I’m not slapping you with tariffs… for now.” Or nothing.

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The Rupee & Markets: Field Notes

It’s an ongoing situation where a single speech in the Swiss Alps can move billions in Mumbai. Here’s the ground reality:

• The Greenland “Thaw”: Trump had threatened a 10% tariff on eight European nations unless they helped him secure Greenland.² But yesterday, he scrapped those plans, claiming a “framework” had been reached with NATO. The thing is, as soon as the trade war fear eased, the “Risk-On” mood came back.

• Equities on Fire: The Sensex didn’t just walk; it jumped 533 points to hit 82,443 in early trade.³ Nifty followed suit, reclaiming the 25,300 mark.⁴ Let’s be real—the market was desperate for any news that wasn’t a “tariff threat.” Those too.

• FII Exodus: Even with the recovery, the “Big Money” is still nervous. Foreign Institutional Investors (FIIs) dumped nearly ₹1,787 crore worth of Indian stocks yesterday.⁵ It’s an ongoing situation where they’re selling “Emerging Markets” to sit on cash while the US-Europe drama plays out.

• The “Veritas” Factor: Forex traders like Anil Bhansali are saying the rebound is a relief rally, but the Rupee is still “vulnerable to external shocks.”⁶ The pending India-US trade deal is the big elephant in the room. And here’s the kicker—until that’s signed, any bad tweet could send us back to 92. Or nothing.

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Financial Snapshot: Jan 22, 2026 (Early Trade)

And Here’s the Kicker…

The thing is, while the Rupee recovered, the Dollar Index is still holding strong at 98.78.¹¹ Let’s be real—the Dollar isn’t getting weaker; the Rupee is just getting a temporary break because the “Greenland Panic” took a backseat.

One side comment—gold also saw a slight dip this morning as the “safe-haven” demand cooled off. It’s an ongoing situation where everyone is moving their money from “under the mattress” back into the market. Those too.

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End…

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