The rupee started the new year on a negative note and depreciated 11 paise to 89.99 against the U.S. dollar in early trade on Thursday (January 1, 2026) weighed down by persistent foreign fund outflows.

Forex traders said the rupee entered 2026 with both challenges and cushions, while global uncertainty persists, India’s strong macroeconomic parameters and ample forex reserves provide stability.

At the interbank foreign exchange market, the rupee opened at 89.94 against the U.S. dollar, then lost some ground and touched 89.99, registering a fall of 11 paise over its previous close.

On Wednesday (December 31, 2025), the last trading session of 2025, the rupee settled at 89.88 against the U.S. dollar.

“While the calendar has changed, volatility is likely to persist. Under Governor Sanjay Malhotra, the RBI appears comfortable allowing the rupee to adjust with market forces, while remaining actively present to smooth excessive moves and maintain orderly conditions,” CR Forex Advisors MD Amit Pabari said.

Progress on the paused India–U.S. trade deal remains a key upside risk and could deliver a meaningful confidence boost if concluded, Mr. Pabari said. “For now, USD/INR is expected to trade in the 89.30–90.20 range in the near term,” he said, adding that a sustained break below 89.30 could open the path toward 88.50.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% higher at 98.32.

Brent crude, the global oil benchmark, was trading lower by 0.78% at $60.85 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex was trading 194.38 points higher at 85,414.98, while the Nifty was up 47.55 points at 26,177.15.

Foreign Institutional Investors offloaded equities worth ₹3,597.38 crore on Wednesday, according to exchange data.

The rupee appreciated 12 paise to 89.51 against the U.S. dollar in early trade on Wednesday (December 24, 2025), supported by the RBI’s major liquidity announcement and the weakness of the American currency in the overseas market.

Forex traders said the rupee started the day on a stronger note after the RBI announced sufficient liquidity for the markets to the extent of approx. ₹3 lakh crore, which will also allow the RBI to keep rupee weakness under control.

At the interbank foreign exchange market, the rupee opened at 89.56 against the U.S. dollar, then gained some ground and touched 89.51 against the U.S. dollar, registering a gain of 12 paise over its previous close.

In the initial trade, it also touched 89.65 against the American currency. On Tuesday (December 23, 2025), the rupee settled at 89.63 against the U.S. dollar.

“The dollar index was softer after the strong GDP growth of 4.3% and with Asian currencies generally stronger, the rupee has managed to claw back,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Mr. Bhansali further added that, “Rupee is likely to remain broadly in the range of 89-90 while RBI protects both sides as it attempts to cut its short dollar positions.”

“The RBI was seen actively managing the rupee to prevent excessive volatility and keep USD/INR from breaking 90 levels while it also bought dollars from the spot market to prevent the appreciation,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07% lower at 97.87.

Brent crude, the global oil benchmark, was trading higher by 0.02% at $62.39 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex rose 63.82 points to 85,588.66, while the Nifty was up 32.80 points to 26,209. 95.

Foreign Institutional Investors offloaded equities worth ₹1,794.80 crore on Tuesday (December 23, 2025), according to exchange data.

The Reserve Bank of India on Tuesday (December 23, 2025) said it will purchase government securities worth ₹2 lakh crore and conduct a $10 billion buy/sell dollar-rupee swap auction to inject liquidity in the banking system.

The latest announcement comes days after the RBI conducted ₹1 lakh crore OMO purchase auctions of Government of India securities and USD/INR Buy/Sell Swap auction of $5 billion for a tenor of three years.

The rupee traded in a narrow range and depreciated by 7 paise to 88.69 against the U.S. dollar in early trade on Thursday (November 13, 2025), as strong U.S. dollar index and a muted trend in domestic equities weighed on investors’ sentiment.

Forex traders said the rupee is trading in a tight range, with renewed optimism over U.S.-India trade talks providing a steady anchor. In contrast, a steady U.S. dollar index dented investors’ sentiment.

The U.S. dollar index is hovering near 99.50, as the market braced for the final chapter of the U.S. government shutdown saga.

At the interbank foreign exchange market, the rupee opened at 88.66 against the U.S. dollar before dropping to 88.69, down 7 paise from its previous close.

On Wednesday (November 12, 2025), the rupee depreciated 12 paise to close at 88.62 against the U.S. dollar.

“The USD/INR pair finds a crucial support at 88.40. A sustained break below this level could open the door toward 87.70–88.00, signalling further rupee strength. On the upside, resistance lies at 88.70–88.80,” CR Forex Advisors MD- Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 99.51.

Brent crude, the global oil benchmark, was trading 0.13% lower at $62.63 per barrel in futures trade.

On the domestic equity market front, the Sensex declined 205.08 points to 84,261.43 in early trade, while the Nifty dropped 61.15 points to 25,814.65.

Foreign Institutional Investors sold equities worth ₹1,750.03 crore on Wednesday, according to exchange data.

Meanwhile, the government on Wednesday approved an Export Promotion Mission (EPM) with an outlay of ₹25,060 crore for six financial years, beginning this fiscal year, a move which will help exporters deal with high tariffs imposed by the U.S.

The mission will be implemented through two sub-schemes— Niryat Protsahan (₹10,401 crore) and Niryat Disha (₹14,659 crore).

“These measures are part of broader efforts to strengthen exports and contain the trade deficit, a factor that ultimately supports the currency by easing pressure on the rupee and maintaining external stability,” Mr. Pabari added.

The rupee recovered 2 paise from its all-time closing low to settle at 88.71 (provisional) against the U.S. dollar on Wednesday (September 24, 2025), as steep tariffs and H-1B visa related issues kept the domestic unit under pressure.

Forex traders said rupee is hovering near its all-time low level on sustained foreign fund outflows amid investors’ risk-aversion and trade policy uncertainty.

Moreover, enhanced U.S. tariffs on Indian goods as well as trade policy uncertainty exacerbated the rupee’s depreciation.

At the interbank foreign exchange, the rupee opened at 88.80 against the U.S. dollar, and finally settled for the day at 88.71 (provisional), registering a recovery of 2 paise over its previous close. On Tuesday (September 23, 2025), the rupee depreciated 45 paise to close at a fresh all-time low of 88.73 against the U.S. dollar. It had touched an all-time intraday low of 88.82 against the U.S. dollar.

The Indian rupee is hovering near all-time low levels against the U.S. dollar on the back of H-1B visa hike shock from the U.S., traders said.

“We expect the rupee to remain weak on U.S. visa fee hike issue. Weakness in the domestic market and FII outflows may further pressurise the rupee.

“However, weakness in crude oil prices may support rupee at lower levels. Any intervention by the RBI may also support the rupee. Traders may take cues from new home sale data from the U.S. USD-INR spot price is expected to trade in a range of 88.40 to 89.25,” said Anuj Choudhary, research analyst, currency and commodities, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.36% higher at 97.61.

Brent crude, the global oil benchmark, was trading 0.61% higher at $68.04 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 386.47 points to settle at 81,715.63, while the Nifty declined 112.60 points to 25,056.90.

Foreign Institutional Investors offloaded equities worth ₹3,551.19 crore on Tuesday, according to exchange data.

Meanwhile, Commerce and Industry Minister Piyush Goyal is in the U.S. for trade talks. He is accompanied by senior officials of the Ministry, including Special Secretary and India’s Chief Negotiator Rajesh Agrawal.

Mr. Goyal has held discussions with his U.S. counterpart.

This visit comes in the backdrop of recently concluded day-long discussions in New Delhi between U.S. Chief Negotiator Brendan Lynch and Mr. Agrawal on the proposed bilateral trade agreement.

The rupee depreciated 15 paise to close at 88.31 (provisional) against the U.S. dollar on Monday (September 22, 2025), as investors weighed President Donald Trump’s H-1B visa fee hike impact on Indian remittances amid heightened risk-averse sentiment.

Forex traders said the recent hike in H-1B visa fees could contribute to equity outflows from the Indian IT sector in the near term, and could also exert pressure on the Indian rupee.

At the interbank foreign exchange, the rupee opened at 88.20, then touched an intra-day low of 88.34 and a high of 88.12 against the greenback. The domestic unit finally settled at 88.31 (provisional), lower by 15 paise over its previous close.

On Friday (September 19, 2025), the rupee appreciated four paise to close at 88.16 against the U.S. dollar.

“We expect the rupee to remain weak as the U.S. visa fee hike may dent market sentiments, which may weigh on the domestic currency.

“Risk aversion in domestic markets may also pressure the rupee. However, overall weakness in crude oil prices may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 88.05 to 88.60,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12% to 97.52.

Brent crude, the global oil benchmark, was trading 0.21% lower at $66.54 per barrel in futures trade.

On the domestic equity market front, Sensex tanked 466.26 points to settle at 82,159.97, while Nifty dropped 124.70 points to 25,202.35.

Foreign institutional investors bought equities worth ₹390.74 crore on a net basis on Friday, according to exchange data.

India’s forex reserves jumped $4.698 billion to $702.966 billion for the week ended September 12, the Reserve Bank of India (RBI) said on Friday.

In the previous reporting week, the overall reserves had increased $4.038 billion to $698.268 billion.

Meanwhile, Commerce and Industry Minister Piyush Goyal is leading an official delegation to the U.S. for trade talks.

The delegation plans to hold talks with the U.S. team to take forward discussions with a view to achieving an early conclusion of a mutually beneficial trade agreement.

The Minister will visit New York, accompanied by the special secretary in the ministry, Rajesh Agrawal, and other officials.

The rupee slumped 36 paise and closed for the day at an all-time low of 88.47 (provisional) against the U.S. dollar, as ongoing tariff issue between India and the U.S. weighed heavily on the domestic currency’s vulnerability.

Forex traders said a recovery in the U.S. dollar ahead of the inflation data and foreign fund outflows further dented investors’ sentiments. Crude oil prices also gained over the past few sessions, putting further pressure on the rupee.

Traders noted that the rupee, which showed signs of minor recovery after U.S. President Donald Trump gave positive signals about the India-U.S. trade treaty, remains fragile due to dollar demand and global factors.

At the interbank foreign exchange, the domestic unit opened at 88.11 and fell to an all-time low of 88.47 against the U.S. dollar in intraday trade. The domestic unit settled for the day at a record low of 88.47 (provisional), registering a sharp decline of 36 paise over its previous close.

On Wednesday (September 10, 2025), the rupee recovered slightly from its record low level and ended with a gain of 4 paise at 88.11 against the US dollar.

On September 5, the rupee touched the lowest-ever intraday level of 88.38, but pared all losses before ending at ₹88.09 against the US dollar.

The unit had recorded its all-time low closing level of 88.15 against the dollar on September 2.

“The Indian rupee is trading near historic lows, facing pressure from strong import dollar demand, external tariff concerns and market anticipation of US inflation data and FED Reserve policy,” said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP.

Mr. Bhansali further added, “The dollar index was also up touching almost 98 levels, while Brent oil prices also were up keeping the dollar bids on the higher side. The premiums were also indicating higher due to increase in interest rate differential between India and US in the last three days. The rupee is expected to be in the range of 88.25 to 88.75 on Friday.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 97.99.

Brent crude, the global oil benchmark, was trading 0.25% lower at $67.32 per barrel in futures trade.

“We expect the rupee to trade with a negative bias amid a recovery in the U.S. dollar index and persistent FII outflows. Dollar demand from importers and ongoing tariff issues between India and U.S. may also pressurise the rupee. However, positive domestic equities and renewed negotiations between India and U.S. may support rupee at lower levels,” said Anuj Choudhary, research analyst, currency and commodities, Mirae Asset ShareKhan.

On the domestic equity market front, Sensex climbed 123.58 points to settle at 81,548.73, while the Nifty advanced 32.40 points to 25,005.50.

Foreign Institutional Investors offloaded equities worth ₹115.69 crore on Wednesday, according to exchange data.

Meanwhile, India and the U.S. are natural partners and teams from both sides are working to conclude negotiations on a bilateral trade deal, Prime Minister Narendra Modi said on Wednesday in response to U.S. President Donald Trump’s remarks that efforts are on to address “trade barriers” between the two countries.

The exchange between the two leaders on social media is largely seen as part of efforts by both New Delhi and Washington to reset ties that witnessed increasing stress in the last few weeks after Mr. Trump doubled tariffs on Indian goods.

The rupee traded in a tight range and slipped 6 paise to 87.69 against the U.S. dollar in morning trade on Wednesday (August 13, 2025) as depreciation pressures are still lingering amid persistent foreign fund outflows.

Forex traders said the rupee is trading in a narrow range as the Reserve Bank of India has stepped up its efforts to curb excessive rupee depreciation.

At the interbank foreign exchange market rupee opened at 87.63, then touched an intra-day low of 87.69 against the U.S. dollar in initial trade, lower by 6 paise from its previous close.

On Tuesday (August 12, 2025), the rupee appreciated 12 paise to close at 87.63 against the U.S. dollar.

In initial trade, the rupee touched an early high of 87.61 against the greenback.

Following the U.S. CPI release, the probability of a Fed rate cut on September 17 rose sharply to 90% from 82%, CR Forex Advisors MD Amit Pabari said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.08% to 98.01, as markets continued to price in a September U.S. rate cut.

Brent crude, the global oil benchmark, was up 0.09% at $66.18 per barrel in futures trade.

On the domestic front, India’s July retail inflation cooled sharply to 1.55%, marking the lowest level since June 2017.

“Price pressures undershooting the Reserve Bank of India’s inflation target are paving the way for more interest rate cuts this year, adding downward pressure on the rupee,” Mr. Pabari said.

“Amidst pressures, the Reserve Bank of India has reportedly stepped up its efforts to curb excessive rupee depreciation, selling at least $5 billion in both onshore and offshore markets this month.

“While these interventions have provided short-term relief, persistent headwinds, including escalated trade tensions from higher U.S. tariffs, continue to leave the rupee vulnerable and depreciation risks alive,” he added.

On the domestic equity market front, the Sensex climbed 327.79 points to 80,563.38 in early trade, while the Nifty was up 112.15 points to 24,599.55.

Foreign Institutional Investors offloaded equities worth ₹3,398.80 crore on Tuesday, according to exchange data.