Mumbai, January 9, 2026 – The Indian rupee weakened against the US dollar, closing at 90.16 on Friday, a decline of 26 paise from its previous close. The day's trading saw the rupee fluctuate between a high of 89.88 and a low of 90.25 against the dollar. On Thursday, the rupee had settled at 89.90 against the US dollar.
Forex traders indicated that elevated global crude oil prices, sustained foreign fund outflows, and increasing geopolitical tensions weighed down the rupee. A stronger US dollar and negative sentiment in domestic equity markets further contributed to the pressure on the local currency.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, suggested that the rupee's negative bias is influenced by tempered geopolitical tensions leading to risk aversion in global markets, a strong US dollar, and rising global crude oil prices. He also noted that Foreign Institutional Investor (FII) outflows could add to the downward pressure. However, potential intervention by the central bank might offer support to the rupee at lower levels. Choudhary anticipates the USD-INR spot price to trade between 89.90 and 90.60.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted the rupee's opening at 89.88, followed by a decline as stock markets fell. Bhansali also mentioned the market's anticipation of the U.S. Supreme Court's decision on tariffs, which could influence Indian stocks and the rupee.
The dollar index, which measures the greenback's strength against a basket of six currencies, was up by 0.11% at 99.04. Brent crude, the global oil benchmark, traded 0.56% higher at $62.34 per barrel in futures trade.
Concerns about potential tariffs from the U.S. and weak domestic equity market sentiment have fueled selling by foreign investors, adding pressure on the rupee. The Reserve Bank of India (RBI) has been actively intervening in the market, selling dollars to manage the rupee's value, but persistent dollar demand continues.
The USD/INR pair reached nearly 90.25 as the US Dollar traded firmly before the release of the United States Nonfarm Payrolls (NFP) data for December. The US Dollar Index (DXY) was trading firmly near its four-week high, around 98.90.
