The Indian rupee ended at 90.8650 per US dollar on January 16, 2026, marking a 0.6% decline. This represents its steepest one-day fall in nearly two months, driven by strong dollar demand and global market volatility. Traders remain cautious amid concerns over capital flows and external pressures.
The Indian rupee faced significant pressure in Friday’s trading session, closing at 90.8650 against the US dollar, down 0.6% on the day. The decline marked the currency’s worst single-day performance in nearly two months, underscoring the impact of global market dynamics and persistent demand for the dollar.
Market analysts attributed the fall to heightened foreign capital outflows, rising crude oil prices, and investor preference for safe-haven assets amid global uncertainty. The weakness in the rupee also reflects broader emerging market currency trends, where volatility has intensified due to geopolitical risks and expectations of tighter monetary policies in advanced economies.
Key highlights from the announcement include
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Indian rupee closed at 90.8650 per US dollar.
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Currency fell 0.6% in a single day, its sharpest decline in nearly two months.
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Strong dollar demand and global volatility pressured the rupee.
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Capital outflows and rising crude oil prices added to weakness.
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Emerging market currencies broadly under pressure amid global uncertainty.
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Traders remain cautious about near-term outlook for the rupee.
The rupee’s performance highlights the challenges facing India’s currency markets, where external factors continue to weigh heavily. While the Reserve Bank of India is expected to monitor developments closely, volatility may persist until global conditions stabilize.
Sources: Reuters, Business Standard, Economic Times