Rupee Slips Marginally Against Dollar At 90.16

The Indian rupee weakened slightly against the US dollar on January 1, settling at 90.1650 per dollar, down 0.16% from its previous close. Currency traders attributed the decline to firm demand for the greenback in global markets and ongoing volatility in crude oil prices, which continue to weigh on India’s import bill.  

Market analysts noted that foreign capital outflows and cautious investor sentiment ahead of key global economic data also contributed to the rupee’s softness. However, strong domestic equity performance and steady inflows into certain sectors helped limit sharper depreciation.  

Key Highlights  

• Rupee closed at 90.1650 per US dollar at 3:30 p.m.  
• Decline of 0.16% compared to previous close  
• Dollar strength and crude oil volatility pressured the currency  
• Foreign capital outflows added to weakness in the rupee  
• Domestic equities provided partial support to limit losses  

Final Takeaway  
The rupee’s marginal decline underscores the currency’s sensitivity to global market dynamics, particularly dollar strength and oil price movements. While domestic fundamentals remain supportive, external pressures continue to drive short-term volatility, keeping traders and policymakers alert to global cues.  

Sources: Reuters, Business Standard, Economic Times