Persistent Foreign Fund Outflows Weigh on Currency
The Indian rupee continued its downward trend for the third consecutive session, slipping 10 paise to 90.44 against the US dollar in early trade on Friday. The domestic currency remained under pressure due to sustained foreign fund outflows and a firm US dollar.At the interbank foreign exchange market, the rupee opened at 90.37 and later weakened further to 90.44 against the greenback. This marked a decline of 10 paise from the previous closing level.
Recent Movement and Market Closure
In the previous session, the rupee had settled 11 paise lower at 90.34 against the US dollar, following a 6 paise fall a day earlier. Trading activity remained muted on Thursday as foreign exchange markets were closed due to a holiday for the Mumbai municipal corporation elections.Dollar Index and Global Cues
The dollar index, which tracks the US currency against a basket of six major currencies, was marginally lower by 0.02 percent at 99.10. The American currency has been influenced by December US inflation data, which reduced expectations of an immediate interest rate cut by the US Federal Reserve.Trade Deficit Data Adds Pressure
The rupee also faced pressure after data released on Thursday showed that India’s trade deficit widened slightly to USD 25.04 billion in December 2025. This compared with USD 24.53 billion in November 2025 and USD 22 billion in December 2024.Crude Oil and Equity Market Support
Lower crude oil prices and positive domestic equity market sentiment helped limit sharper losses in the rupee. Brent crude, the global oil benchmark, was trading 0.34 percent lower at USD 63.54 per barrel in futures trade.On the domestic equity front, benchmark indices opened higher, with the Sensex rising 210.04 points to 83,592.75, while the Nifty gained 34.65 points to 25,700.25.
Foreign Institutional Activity
Foreign institutional investors remained net sellers in the equity market, offloading shares worth Rs 4,781.24 crore in the previous session, as per exchange data.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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