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    Rupee Strengthens by 26 Paise to 89.92 Against U.S. Dollar in Early Trade

    3 months ago

    Mumbai | January 7, 2026

    The Indian rupee appreciated sharply by 26 paise to trade at 89.92 against the U.S. dollar in early trade on Wednesday, supported by a weaker dollar in global markets and a significant decline in crude oil prices.

    At the interbank foreign exchange market, the rupee opened at 90.20 per dollar but quickly gained momentum, strengthening to 89.92, marking a notable recovery from its previous close. The domestic currency had already snapped a four-day losing streak on Tuesday, when it closed 12 paise higher at 90.18 against the dollar.

    Factors Supporting the Rupee

    Market participants attributed the rupee’s rise to easing pressure from global crude oil prices and softness in the U.S. dollar. Brent crude, the international oil benchmark, fell 1.05% to $60.06 per barrel, providing relief to oil-importing countries like India.

    The dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.05% lower at 98.52, further supporting emerging market currencies.

    Commenting on the currency movement, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee opened on a firm note despite ongoing trade-related concerns. He noted that exporters are likely to sell dollars at higher levels during the day, while importers may step in to buy on dips, especially if the dollar nears the 90 mark.

    Equity Markets and Capital Flows

    Meanwhile, domestic equity markets opened lower amid cautious global sentiment. The Sensex declined 169.64 points to 84,909.30, while the Nifty slipped 42.35 points to 26,128.90 in early trade.

    Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹107.63 crore on Tuesday, according to exchange data, which capped some of the rupee’s gains.

    Outlook

    Currency traders said the rupee’s near-term movement will depend on global oil prices, dollar trends, foreign fund flows, and developments on the trade front. While lower crude prices and a softer dollar provide support, volatility is expected to persist amid geopolitical and economic uncertainties.

     

    Overall, the early trade gains signal cautious optimism for the rupee after recent weakness, with market participants closely watching global cues for further direction.

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