The Indian rupee closed at 89.9750 per US dollar, down 0.1% from the previous close, amid foreign fund outflows and global dollar strength. Trading ranged between 89.6750 and 89.9830. Analysts expect near-term pressure on the rupee due to global interest rate trends and geopolitical uncertainties.
The Indian rupee ended 0.1% weaker at 89.9750 per US dollar on December 29, 2025, reflecting cautious sentiment in currency markets as traders balanced year-end flows and global economic cues.
Key Highlights
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Closing Level: The rupee provisionally settled at 89.9750/USD, compared to its previous close of 89.8750/USD.
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Market Drivers: Weakness was attributed to foreign fund outflows, dollar strength in global markets, and subdued domestic trading volumes ahead of the New Year.
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Global Context: The US dollar index remained firm, supported by expectations of slower Federal Reserve rate cuts in 2026, which weighed on emerging market currencies.
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Domestic Factors: Analysts noted that importer demand for dollars and profit booking by investors added pressure on the rupee.
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Range Movement: During the session, the rupee traded between 89.6750 and 89.9830, highlighting intraday volatility.
Currency strategists suggest the rupee may remain under pressure in the near term, with geopolitical risks and global interest rate trends shaping its trajectory.
Sources: Investing.com India, Exchange-Rates.org, Valutafx