Tag: Rupee

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Beyond

Rupee drops to 90.24 paise on Venezuela crisis

The Indian rupee extended its losses on Monday, slipping by 4 paise to trade at 90.24 per US dollar in early trade, as global uncertainty and geopolitical tensions weighed on market sentiment.

A key factor pressuring the rupee has been the escalating crisis in Venezuela, which has triggered risk aversion across global markets. Fears of further US action in the region have pushed investors towards safe-haven assets, strengthening the US dollar and putting emerging market currencies, including the rupee, under renewed stress.

The rupee’s move below the 90 level is seen as a significant psychological marker for traders. Strong dollar demand from importers and continued foreign portfolio investor outflows have further reduced support for the domestic currency. With global investors cutting exposure to riskier assets, capital inflows into emerging markets have remained weak.

Market participants expect the rupee to face a challenging week ahead as geopolitical developments unfold and global investors assess the broader impact of the Venezuela situation on energy markets, global trade and financial stability. Any escalation could keep the dollar firm and limit recovery in risk-sensitive currencies.

Attention is also focused on upcoming US economic data, which could shape expectations around interest rates and monetary policy. Strong data may reinforce dollar strength, adding to pressure on the rupee in the near term.

Domestically, traders are watching crude oil prices and equity market movements for cues. While softer oil prices and resilient equities can provide some cushion, they have so far been outweighed by global risk factors.

The Reserve Bank of India is expected to closely monitor currency movements and may intervene to smooth excessive volatility if required. Overall, the rupee’s early-week decline highlights the impact of global geopolitical risks, particularly the Venezuela crisis, on currency markets at the start of 2026.

Also Read: Gold slips to ₹1.35 lakh, Silver down to ₹2.41 lakh

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Beyond

Rupee opens 2026 at 89.99 per dollar, down 11 paise

The Indian rupee began the first trading day of 2026 on a subdued note, slipping 11 paise to trade at 89.99 against the US dollar. Early trading indicated cautious sentiment, as the currency came under pressure from continued foreign fund outflows and lingering uncertainties in global markets. Analysts said that subdued trading volumes due to New Year holidays further limited market activity, while routine corporate demand for dollars added to the downward pressure.

At the interbank foreign exchange market, the rupee opened at 89.94 per dollar before weakening to 89.99. Traders observed that early-session volatility reflected a cautious start for both domestic and international investors, who remained wary of global trade uncertainties and geopolitical developments.

The rupee’s weak opening is in line with its performance over 2025, a year in which it recorded its steepest annual decline in three years. By December, the currency had fallen nearly 5 percent against the US dollar, driven by sustained selling by foreign institutional investors (FIIs) and the absence of major positive economic triggers, such as significant trade deals or fresh foreign investment inflows.

Experts said that continued selling in Indian equities by FIIs contributed to currency volatility, while the Reserve Bank of India (RBI) intervened at intervals to moderate extreme movements. Analysts highlighted the psychological significance of the 90-per-dollar level, warning that a breach above it could prompt increased demand for dollars and further pressure on the rupee.

Despite the soft start, a weaker currency could help Indian exporters by making goods more competitively priced in international markets. However, any meaningful strengthening of the rupee will likely depend on higher foreign capital inflows and stabilization in global financial markets.

For now, the rupee’s opening trend underscores the cautious sentiment prevailing in currency markets. Traders expect the first few weeks of 2026 to remain sensitive to global developments, foreign fund movements, and domestic corporate demand, keeping the rupee under close watch.

Also Read: Gold slips to ₹1,34,880; Silver falls to ₹2,38,900

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Beyond

Rupee slides to 89.95 against US Dollar

The Indian rupee weakened 5 paise in early trade on Monday, slipping to 89.95 against the US dollar. The decline continues the recent soft trend, largely driven by foreign portfolio investor (FPI) outflows.

At the interbank foreign exchange, the rupee opened at 89.95 per dollar, slightly lower than Friday’s close of 89.90. Traders noted that continued selling of Indian equities by foreign investors has put downward pressure on the currency, even as domestic stock markets opened modestly higher.

Analysts say foreign investor sentiment will be a key factor for the rupee in the near term. A return of foreign capital into Indian equities could help stabilize the currency, which remains weaker among emerging market currencies.

Global factors are also influencing the rupee. The dollar index was marginally lower, while rising Brent crude prices added pressure. On the domestic front, the Reserve Bank of India (RBI) continues to monitor the market and use liquidity tools to prevent sharp currency swings.

Overall, the rupee’s performance reflects cautious sentiment ahead of year-end, with thin trading volumes, continued fund outflows, and mixed global cues contributing to the early decline.

Also Read: Gold ₹1,41,210, Silver ₹2,50,900 in early trade

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Beyond

Rupee slips 3 paise to 89.65 in early trade

The Indian rupee inched higher on Tuesday, closing at 89.65 against the US dollar, marking a modest gain of 3 paise from the previous session. Market analysts attributed the slight rise to a weaker US dollar, which generally supports emerging market currencies like the rupee.

The rupee had opened slightly stronger at around 89.67 at the interbank foreign exchange market but quickly gave up those gains as buying interest in the dollar picked up. Dealers said the early optimism faded as traders reacted to ongoing selling by foreign institutional investors, which has been a key factor weighing on the currency.

Foreign investors have been pulling money out of Indian markets in recent sessions. This has increased demand for the US dollar, putting downward pressure on the rupee. Adding to this, Indian companies were seen buying dollars to pay for imports and to hedge future foreign currency needs.

Market participants said the overall mood remains cautious. Although the Reserve Bank of India has stepped in at times to limit sharp movements in the currency, the rupee has struggled to hold on to gains. The central bank’s efforts are mainly aimed at reducing volatility rather than defending any specific level.

The rupee has also been affected by a firm US dollar globally. As the greenback remains strong in international markets, most emerging market currencies, including the rupee, have faced selling pressure.

Traders noted that importers continue to actively buy dollars, while exporters are selling cautiously, waiting for more favourable exchange rates. This imbalance in demand and supply has kept the rupee under stress.

Also Read: Oil prices edge up after US intercepts Venezuelan tanker

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Beyond

Rupee slips to ₹91 per dollar, stabilises after RBI action

The Indian rupee faced another bout of volatility on Wednesday, opening at a record low of ₹91.07 per US dollar before bouncing back later in the session. Early trading pressure pushed the currency to around ₹91.08, reflecting continued foreign fund outflows and repatriation of overseas corporate earnings.

Market watchers say the rupee’s weakness is part of a broader trend affecting emerging market currencies. Investors have been cautious amid global economic uncertainties and lingering concerns over trade negotiations with the United States.

The Reserve Bank of India (RBI) stepped in decisively to curb the slide. State-run banks, acting on the central bank’s guidance, sold dollars in the spot and forward markets, helping the rupee recover some ground. The currency strengthened to around ₹90.25 intraday and eventually settled near ₹90.28.

“The RBI’s timely action reassures the market that extreme volatility won’t persist,” said a currency strategist.Analysts noted that such intervention is part of the RBI’s strategy to prevent a one-sided depreciation, which could increase costs for importers and strain corporate treasuries.

Despite the rebound, traders remain cautious, noting that the rupee is likely to remain sensitive to foreign investment flows, global market moves, and domestic economic developments. With inflation and interest rate expectations in play, analysts expect short-term volatility to continue.

The rupee’s swings underline the delicate balancing act for the central bank: supporting the currency without disrupting economic growth. For businesses and investors, the message is clear, while short-term fluctuations are inevitable, RBI intervention can provide a stabilising influence when markets turn jittery.

Also Read: Gold steady at ₹13,385/gm, Silver nears ₹1.99 lakh/kg

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Beyond

Rupee slides to ₹90.75 due to market pressure

The Indian rupee fell to a fresh all-time low on Monday, trading above ₹90 against the US dollar, continuing a downward trend that has been building over recent sessions. In early trade, the currency slipped past ₹90.55 and later touched around ₹90.75 per dollar, reflecting persistent pressure from both global and domestic factors.

Market analysts attribute the slide to several key reasons. Uncertainty surrounding trade negotiations with the United States has unsettled investor sentiment, contributing to a cautious approach by both domestic and foreign investors. Foreign capital outflows have accelerated, as investors pull money from Indian equities and bonds, increasing demand for dollars and reducing support for the rupee.

Another factor adding to the rupee’s weakness is the country’s widening trade deficit. India imports more goods than it exports, which increases the need for foreign currency and puts additional downward pressure on the domestic currency. Despite the Reserve Bank of India occasionally intervening to stabilize the rupee, these measures have not been enough to reverse the trend amid sustained selling of the currency in global markets.

The weakness of the rupee also affected domestic equity markets. Key stock indices recorded losses as foreign investors continued to offload holdings, reflecting broader caution in the market. Economic experts note that while India’s macroeconomic fundamentals, including GDP growth, remain relatively strong, the currency market often reacts to short-term factors such as capital flows, trade developments, and global dollar strength.

For the general public and businesses, the falling rupee has practical implications. Imports, including fuel, electronics, and other goods, become more expensive, leading to potential increases in prices for consumers. On the other hand, exporters may benefit as a weaker rupee makes Indian products more competitive in international markets.

Overall, the rupee’s slide underscores the challenges facing India’s currency in a volatile global economic environment. Investors and policymakers will continue to monitor foreign investment flows, trade negotiations, and macroeconomic indicators closely to gauge the currency’s direction in the coming months.

Also Read: China to limit silver exports from Jan 1

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Beyond

Rupee falls 9 paise, hits record low of ₹90.41

The Indian rupee slipped further on Friday, closing at a record low of ₹90.41 against the US dollar, down 9 paise from the previous session. This marks another milestone in the rupee’s ongoing depreciation trend.

Traders said the fall was mainly due to high demand for dollars from importers who needed to pay for overseas goods and services. At the same time, foreign investors have been pulling money out of Indian stocks and bonds, adding to pressure on the currency.

Global factors also played a role. A stronger dollar abroad and uncertainty in financial markets made investors cautious, keeping the rupee under stress. Analysts said that while the Reserve Bank of India can step in to stabilize the currency, its ability to stop the decline is limited when import demand and capital outflows are high.

The rupee’s slide reflects wider economic challenges, including a trade gap, where India imports more than it exports, increasing the need for foreign currency. Experts expect the rupee to face continued pressure in the coming weeks as global market volatility and domestic economic factors play out.

Despite the fall, some believe the rupee may find temporary support if global dollar strength eases or if capital inflows improve. For now, businesses and consumers may feel the pinch as imports become more expensive and foreign travel or overseas education costs rise.

Also Read: IndiGo moves court for ₹900 crore refund

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Beyond

Indian Rupee hits historic low of ₹90.46 against US Dollar

The Indian rupee weakened further on Thursday, December 11, 2025, touching a historic low of ₹90.46 against the US dollar. This marks the steepest level the rupee has reached in its history, continuing the depreciation trend seen over the past few months.

Several factors contributed to the sharp fall. Ongoing global uncertainties and slow progress in trade negotiations with the United States have rattled investor confidence. At the same time, domestic demand for US dollars from companies making international payments increased pressure on the rupee. Additionally, foreign investors have been pulling funds from Indian markets, adding to the volatility.

This year, the rupee has fallen by over 5 per cent, making it one of the worst-performing Asian currencies in 2025. Analysts say the currency’s decline has been influenced by rising global crude oil prices, high import bills, and widening trade deficits, which have further strained India’s foreign exchange reserves.

In response to the slide, the Reserve Bank of India (RBI) reportedly intervened in the forex market, buying and selling dollars to stabilize the rupee. Such measures are intended to reduce sharp fluctuations and maintain market confidence.

Economists warn that the rupee may continue to face pressure in the near term unless there is progress in trade negotiations, improved foreign investment inflows, and easing of global market uncertainties.

Investors and businesses are closely monitoring the currency movements, as the fall in rupee value impacts import costs, inflation, and international trade. With the year-end approaching, all eyes are on the RBI’s interventions and global market trends to determine if the currency can recover.

Also Read: IndiGo offers Rs 10,000 vouchers to passengers

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Beyond

Rupee slips, hovers around ₹90 against US dollar

The Indian rupee remained under pressure on Tuesday, opening at ₹90.15 per US dollar before recovering slightly to around ₹89.99 in early trade. The local currency has been struggling to hold gains as multiple factors continue to weigh on investor sentiment.

A major reason for the rupee’s weakness is the strong demand for dollars from importers. India’s heavy import requirements, particularly in oil and machinery, keep pushing up the demand for foreign currency. At the same time, foreign investors are pulling funds out of Indian equities, creating additional pressure on the rupee. Uncertainty surrounding India–US trade negotiations has also made investors cautious, further affecting the currency’s performance.

Rising crude oil prices are another factor contributing to the rupee’s decline. Higher oil prices increase India’s import bill, adding stress to the currency. Analysts say that unless global crude prices stabilize, the rupee may continue to face downward pressure in the near term.

The weak rupee has also impacted the stock markets. At the opening, the BSE Sensex fell over 600 points (about 0.7%), while the NSE Nifty 50 declined nearly 0.9%, reflecting investor concerns over currency volatility and its effect on corporate earnings.

Market participants are closely watching developments in global trade, crude oil prices, and foreign capital flows for clues on the rupee’s direction. Experts advise businesses and investors to stay alert and adopt hedging strategies where possible, given the current volatility in the currency market.

With multiple domestic and global factors influencing the rupee, the currency is expected to remain volatile in the coming days. Investors will keep a close eye on government policies, trade developments, and international market trends to gauge the rupee’s movement.

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Corporate

Rupee hits ₹90, consumer goods may get costlier

The Indian rupee has breached the ₹90 mark against the US dollar, trading at around ₹90.40 per dollar in early December, marking a record low for the domestic currency. Analysts point to multiple factors behind the slide, including increased demand for dollars due to heavy imports, foreign institutional investors withdrawing funds from Indian markets, and the persistent trade deficit.

The fall in the rupee is expected to directly impact companies that rely on imported raw materials, components, or finished goods. This includes sectors such as electronics, automobiles, beauty and personal care, and other consumer goods. For example, smartphone makers, appliance companies, and car manufacturers are likely to face higher input costs, forcing them to either absorb the expenses or pass them on to consumers. Several firms have already indicated price hikes of 3%–10% in the coming weeks.

For consumers, this could mean higher prices for products they regularly buy. Goods that had become slightly cheaper recently due to GST or other tax reductions may now see cost increases, reversing earlier benefits. Electronics and cars are expected to be hit hardest, followed by imported cosmetics, luxury items, and certain packaged foods that rely on imported ingredients.

Economists warn that the currency depreciation may also contribute to overall inflationary pressures, as import-dependent sectors adjust their pricing. In addition, companies with overseas borrowings may face higher debt servicing costs, potentially affecting profits and investment plans.

Some analysts believe that the rupee may continue to face pressure in the near term, especially if crude oil prices remain high or foreign fund outflows persist. While exporters may benefit from a weaker rupee, the broader impact on consumer prices and corporate margins is expected to be negative.

The government and the Reserve Bank of India (RBI) are monitoring the situation, but immediate intervention may be limited as the rupee reflects underlying global and domestic economic trends. Consumers may need to prepare for higher costs on imported and semi-imported goods, while companies weigh how much of the cost they can absorb without hurting demand.

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