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Rupee Closes Near Record Low at 90.78 as Outflows and Firm Dollar Weigh

Foreign selling combined with dollar strength after US inflation pressured the currency.

Overview

  • The rupee ended at 90.78 per US dollar after touching 90.89 intraday, marking a third straight decline and a 61-paise slide since Wednesday.
  • Traders pointed to strong dollar demand, persistent foreign investor selling, and fixing-related bids linked to the RBI’s recent FX swap after Thursday’s market holiday.
  • Exchange data showed foreign institutional investors sold Rs 4,346.13 crore on Friday, adding to this week’s broader outflows.
  • The dollar index hovered near 99.24 after US December inflation tempered expectations for an immediate Federal Reserve rate cut.
  • India’s trade deficit widened to USD 25.04 billion in December 2025, while equities closed higher and Brent crude traded near USD 64.34.