The Indian rupee closed at 89.98 per US dollar on January 2, 2026, marking a 0.02 percent decline from the previous session. The slight weakness reflects global dollar strength and cautious investor sentiment. Traders remain watchful of crude prices, US economic data, and RBI’s liquidity stance for near-term direction.
India’s currency market began the New Year with a modest dip, as the rupee slipped 0.02 percent to settle at 89.98 per US dollar. The decline, though marginal, highlights the impact of global dollar strength and cautious positioning by investors amid mixed global economic signals.
Market participants noted that while domestic fundamentals remain supportive, external factors such as crude oil price volatility and US bond yields continue to weigh on sentiment. The Reserve Bank of India’s liquidity management and intervention strategies are expected to play a key role in stabilising the currency in the near term.
Key Highlights
-
The rupee closed at 89.98 per US dollar, down 0.02 percent on the day.
-
Global dollar strength and cautious investor sentiment contributed to the decline.
-
Crude oil price volatility and US bond yields remain key external pressures.
-
Domestic fundamentals, including strong forex reserves, provide underlying support.
-
RBI’s liquidity stance and potential interventions will be closely watched by traders.
The rupee’s marginal weakness underscores the delicate balance between domestic resilience and global uncertainties. Analysts expect the currency to trade in a narrow range, with external developments shaping short-term movements.
Sources: Reuters, Economic Times, Business Standard