Rupee Slips 7 Paise to 89.97 Against US Dollar in Early Trade on Friday

Mumbai, January 9​

The Indian rupee weakened by 7 paise to 89.97 against the US dollar in early trade on Friday, pressured by sustained foreign fund outflows and a rise in global crude oil prices.

At the interbank foreign exchange market, the rupee opened at 88.88 against the US dollar before slipping to 89.97, compared with its previous close of 89.90. The local currency had settled 3 paise lower in the previous session amid continued selling by foreign investors and a stronger US dollar.

Market sentiment remained cautious as concerns over possible additional tariffs by the United States and weakness in domestic equity markets weighed on investor confidence. Persistent selling by foreign investors in equities added further pressure on the rupee during early trading hours.

Global and Domestic Market Cues​

In global markets, the dollar index, which tracks the strength of the US currency against a basket of six major currencies, was trading flat at 98.93. Brent crude oil prices rose 0.53 percent to USD 62.32 per barrel in futures trade, increasing concerns for oil importing economies.

On the domestic equity front, benchmark indices opened lower. The Sensex declined 78.84 points to 84,102.12, while the Nifty slipped 21.50 points to 25,850.85 in early trade.

Foreign institutional investors remained net sellers, offloading equities worth Rs 3,367.12 crore on Thursday, as per exchange data. The continued outflow of foreign capital has been a key factor weighing on both the equity markets and the rupee.

Rupee Movement Outlook​

The rupee’s decline reflects a combination of external pressures from higher crude oil prices and cautious global sentiment, along with domestic factors such as sustained foreign fund outflows and weak equity market performance.