The rupee declined 4 paise to close at 90.21 (provisional) against the U.S. dollar on Tuesday (January 13, 2026), weighed down by higher crude oil prices, a firm American currency and incessant outflow of foreign funds.

Analysts said geopolitical tensions and weak equity markets also put pressure on the Indian currency.

At the interbank foreign exchange, the rupee opened at 90.24 and touched the intra-day low of 90.30 against the greenback. The currency ended the session at 90.21 (provisional) against the dollar, down 4 paise from its previous close.

On Monday (January 12, 2026), the rupee ended 1 paisa higher at 90.17 against the U.S. dollar.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee declined amid ongoing geopolitical tensions and global risk aversion. Weak domestic markets, FII outflows and a surge in crude oil prices also pressurised the rupee.

“However, optimism on the India-US trade deal and rising odds of a rate cut amid weak labour market reports last week may support the rupee at lower levels. Any intervention by the central bank may also support the rupee. Traders are now focusing on US inflation data. USD-INR spot price is expected to trade in a range of 90.10 to 90.70,” Mr. Choudhary said.

Market sentiment improved after the new U.S. envoy to India, Sergio Gor, on Monday (January 12, 2026) said that both sides are actively engaged in firming up a trade deal, forex analysts said.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.07% higher at 98.69.

Brent crude, the global oil benchmark, was trading 1.47% higher at $64.80 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex lost 250.48 points or 0.30% to settle at 83,627.69, while the Nifty fell 57.95 points or 0.22% to 25,732.30.

Foreign institutional investors offloaded equities worth ₹3,638.40 crore on Monday (January 12, 2026), according to exchange data.

According to government data released on Monday (January 12, 2026), India’s retail inflation rose to a three-month high of 1.33% in December, mainly due to higher food prices, but remained below the Reserve Bank of India’s lower tolerance level.

Also, the latest data from the Income Tax Department showed the government’s net direct tax collection grew about 8.82% to over ₹18.38 lakh crore in the current fiscal till January 11 due to slower refunds and better corporate tax mop-up.

Net corporate tax collection grew 12.4% to over ₹8.63 lakh crore, and taxes from non-corporates, including individuals, rose 6.39% to about ₹9.30 lakh crore.

The rupee depreciated 23 paise to close at 88.71 (provisional) against the U.S. dollar on Thursday (November 20, 2025), on broad strength of the American currency and fading odds of a rate cut by the U.S. Federal Reserve.

Forex traders said the dollar has staged a rally, moving above the 100 level, after the U.S. Federal Reserve minutes indicated that most officials were opposed to a rate cut in December, following the October cut.

At the interbank foreign exchange market, the rupee opened at 88.63, then lost ground, touching an intra-day low of 88.74. It also hit an intra-day high of 88.62 against the U.S. dollar.

The local currency finally settled for the day at 88.71 (provisional) against the greenback, down 23 paise from its previous close.

On Wednesday (November 19, 2025), the rupee appreciated 12 paise to close at 88.48 against the U.S. dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03% to 100.19.

Brent crude, the global oil benchmark, was trading 0.71% higher at $63.96 per barrel in futures trade.

“We expect the rupee to trade with a slight negative bias on rising dollar and declining odds of a rate cut by the US Federal Reserve in its December Federal Open Market Committee (FOMC) meeting,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Experts said dollar demand from importers may pressurise the rupee further. However, a rise in global risk appetite and optimism over India-U.S. trade deals may support the rupee at lower levels.

“We may see the RBI intervening as the rupee inches towards record low levels. Traders may also take cues from the non-farm payrolls report. USD-INR spot price is expected to trade in a range of 88.40 to 89,” Mr. Choudhary added.

Meanwhile, on the domestic equity market front, the Sensex jumped 446.21 points to settle at 85,632.68, while the Nifty climbed 139.50 points to 26,192.15.

Foreign Institutional Investors bought equities worth ₹1,580.72 crore on a net basis on Wednesday (November 19, 2025), according to exchange data.

Commerce and Industry Minister Piyush Goyal on Tuesday (November 18, 2025) said “you will hear good news” on the proposed trade pact between India and the U.S. once the deal is fair, equitable and balanced.

The remarks came days after President Donald Trump stated that the U.S. is “pretty close” to reaching a “fair trade deal” with India, and added that he will lower tariffs imposed on Indian goods at “some point”.