Overview
- The rupee ticked up to 89.92 per dollar in early trade on Jan. 2 after closing the previous session at 89.98.
- India’s currency began 2026 on a soft note, slipping 11 paise to 89.99 in early trade on Jan. 1 before ending the day little changed.
- Foreign investors sold Indian equities worth Rs 3,597.38 crore on Wednesday and Rs 3,268.60 crore on Thursday, adding to dollar demand.
- Traders report the Reserve Bank of India is capping moves beyond 90, with analysts expecting USD/INR to hold in a 89.30–90.20 range as the central bank smooths volatility.
- The rupee fell about 5% in 2025 and underperformed major Asian peers even as reserves swelled near $689 billion and domestic buffers limited market disruption.