Rupee Slips 8 Paise to 90.98 Against Dollar in Early Trade

Mumbai, Jan 20
The rupee weakened by 8 paise to 90.98 against the US dollar in early trade on Tuesday, pressured by strong dollar demand from metal importers and continued foreign fund outflows that weighed on overall market sentiment.

At the interbank foreign exchange market, the rupee opened at 90.91 and declined further to 90.98 against the greenback, compared with its previous close of 90.90.

Market Pressures and Recent Trends​

The domestic currency has remained under strain amid persistent capital outflows and elevated global uncertainty, keeping emerging market currencies under pressure. Weakness in domestic equities also contributed to the cautious tone in currency trade.

On Monday, the rupee had depreciated by 12 paise to close at 90.90 against the dollar, remaining close to its record low closing level. Earlier, on December 16, 2025, the rupee touched an intra-day low of 91.14 and recorded its lowest closing level of 90.93 against the American currency.

Global Cues and Commodity Movement​

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.44 percent lower at 98.95.

Brent crude, the global oil benchmark, edged 0.11 percent higher to USD 64.01 per barrel in futures trade.

Equity Markets and Foreign Flows​

On the domestic equity front, benchmark indices opened lower. The Sensex declined 311.33 points to 82,934.85, while the Nifty slipped 99.5 points to 25,486 in early trade.

Foreign institutional investors continued to pare exposure to Indian equities, offloading shares worth Rs 3,262.82 crore on Monday, according to exchange data.

The rupee’s movement is also being closely tracked amid global developments, including legal deliberations in the US Supreme Court that are being watched by global markets. Market participants are also monitoring the currency outlook in the context of possible intervention by the Reserve Bank of India if volatility intensifies.