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Rupee Closes Weaker at 89.90 as Year-End Flows Pressure Currency

RBI activity kept USD/INR confined to 89.50–90.00 during holiday-thin trading.

Overview

  • The rupee fell 19 paise to settle at 89.90 per dollar after touching an intraday low of 89.94.
  • Forex traders cited persistent foreign fund outflows, stronger dollar demand from importers, a modest oil rebound and risk aversion linked to trade-deal uncertainty.
  • FPIs were net sellers of equities worth Rs 317.56 crore on Friday, according to exchange data.
  • Domestic benchmarks dropped, with the Sensex closing down 367.25 points at 85,041.45 and the Nifty lower by 99.80 points at 26,042.30.
  • External gauges showed the dollar index near 98.07 and Brent crude futures around USD 62.41 per barrel, while RBI and merchant flows kept the session within a roughly 89.50–90.00 range.