Overview
- The rupee opened at 89.95 per US dollar on Monday, slipping 5 paise from the previous close.
- Foreign portfolio investors continued to sell Indian equities, a persistent drag on the currency, according to exchange data.
- A market report from Invesco suggests the worst phase of depreciation may be passing, though it remains too early to call a lasting trend.
- The Reserve Bank of India has been smoothing volatility via spot operations, liquidity tools and forward market management, with forex reserves at $693.318 billion in the week ended December 19.
- Key drivers remain FPI outflows, elevated importer dollar demand, Indo‑US trade uncertainty and US rate dynamics, while softer Brent crude has eased some pressure on the import bill.