Overview
- The currency closed at 89.98 per dollar on Dec. 29 and was quoted near 89.95 in early trade on Dec. 30, keeping it just below the 90 mark.
- Foreign investors continued to sell equities, including Rs 2,759.89 crore on Monday, and importer dollar demand kept upward pressure on USD/INR.
- The RBI has been smoothing volatility with spot operations, a reported $5 billion swap, and balance-sheet support as forex reserves rose to $693.318 billion for the week ended Dec. 19.
- For 2025, the rupee weakened roughly 4.7%–5.2%, breached the 90-per-dollar level earlier in December, and ranked among Asia’s softer performers.
- Market reports outline a 2026 base case of Rs 88–92 per dollar, with outcomes hinging on Fed easing, trade developments, and the return of foreign flows.