The rupee started the year of 2026 on a negative note, declining 11 paise in early trade to settle at 89.99 against the US dollar on Thursday amidst persistent outflows by foreign investors.
At the interbank foreign exchange market, the domestic unit opened at 89.94 against the US dollar, then lost some ground and touched 89.99, registering a fall of 11 paise over its previous close.
On Wednesday, the last trading session of 2025, it had settled at 89.88 against the US dollar.
Forex traders expect volatility to continue for the Indian currency, as India’s strong macroeconomic parameters are off-set by global challenges.
“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,” opined CR Forex Advisors MD, Amit Pabari.
Also Read: Economy 2025: Hard lessons that made the ride bumpy
Experts are expecting a progress in the slowed US-India trade talks to help the rupee find its balance, with Pabri saying until then, it is expected to trade in the 89.30–90.20 range in the near term.
“A sustained break below 89.30 could open the path toward 88.50,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent higher at 98.32.
Brent crude, the global oil benchmark, was trading lower by 0.78 per cent at USD 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.
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