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The Indian rupee closed at 89.8550 per U.S. dollar on December 26, 2025, down 0.1% from its previous close. Weak global cues, thin year-end volumes, and FII outflows pressured the currency. Analysts expect range-bound movement near 89.5–90, with global risk sentiment and oil prices shaping near-term trends.
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The Indian rupee ended lower on Friday, December 26, 2025, trading at 89.8550 per U.S. dollar at 3:30 p.m. IST, marking a 0.1% decline from the previous close, according to provisional data.
Key Highlights
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Currency Movement: The rupee’s slight depreciation was attributed to dollar strength in global markets and muted foreign inflows.
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Market Drivers: Traders noted that thin year-end volumes and cautious positioning ahead of global central bank updates contributed to the weakness.
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Global Context: The U.S. dollar index remained firm, supported by expectations of slower rate cuts by the Federal Reserve in 2026, which weighed on emerging market currencies.
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Domestic Factors: While India’s equity markets also closed lower, foreign institutional investor (FII) outflows added pressure on the rupee. However, strong domestic fundamentals and resilient forex reserves continue to provide a buffer against sharp volatility.
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Outlook: Analysts expect the rupee to trade in a narrow range near 89.5–90 per dollar in the short term, with global risk sentiment and oil prices being key triggers.
Sources: Reuters, Economic Times, Business Standard
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