Overview
- The rupee settled at 90.20 per dollar on Friday after an early high of 89.92 and an intraday low of 90.25, reversing a 89.98 close on the prior session.
- Sustained foreign investor withdrawals remained the main drag, with FIIs selling Rs 3,268.60 crore on Thursday after Rs 3,597.38 crore on Wednesday, alongside steady importer dollar demand and thin early‑year liquidity.
- Traders and analysts reported RBI dollar sales via state‑run banks to slow the decline, and pointed to sizable reserves near $688.94 billion and increased onshored gold as buffers.
- The currency lost about 5% in 2025 and was among Asia’s weakest, a slide compounded by negative net FDI between January and October and ongoing trade‑related uncertainties.
- Market participants see USD/INR holding in a tight 89.30–90.20 band near term unless a larger shock forces a break from the range.