Rupee Starts 2026 on Weak Note, Slips 10 Paise Against US Dollar
Mumbai: The Indian rupee began the first trading session of 2026 on a weak footing, slipping 10 paise to close at 89.98 against the US dollar on Thursday, weighed down by sustained foreign fund outflows and subdued domestic equity markets. Currency traders said investor sentiment remained cautious amid a firm dollar and continued demand for the greenback from importers.
At the interbank foreign exchange market, the rupee opened at 89.94 against the dollar. During the session, it touched an intra-day low of 89.99 and a high of 89.93 before settling at 89.98 on a provisional basis. In the previous session on Wednesday, the rupee had declined 13 paise to close at 89.88.
Market participants noted that the USD/INR pair traded in a narrow range, with some support from easing crude oil prices offset by a stronger dollar index and persistent foreign capital outflows. The rupee had ended 2025 with a depreciation of nearly 5%, making it one of the worst-performing currencies in Asia during the year.
The dollar index, which measures the US currency against six major global currencies, was trading 0.09% higher at 98.32. Brent crude oil prices rose 0.78% to $60.85 per barrel in futures trade, adding marginal pressure on the domestic currency.
On the equity front, Indian benchmark indices closed largely flat. The Sensex slipped 32 points to end at 85,188.60, while the Nifty gained 16.95 points to settle at 26,146.55. Exchange data showed that foreign institutional investors sold equities worth ₹3,597.38 crore on Wednesday.
Meanwhile, gross GST collections in December 2025 rose 6.1% year-on-year to over ₹1.74 lakh crore, government data showed.
Our Final Thoughts
The rupee’s weak start to 2026 highlights persistent pressure from global risk aversion and capital outflows, with near-term movement likely to remain sensitive to dollar trends and foreign investment flows.