Rupee extends fall for fourth straight session
The Indian stayed weak for the fourth straight session and closed 8 paise lower at 90.28 (provisional) against the US dollar on Monday, weighed down by a firm American currency and subdued equity market sentiment.
Forex traders said that the renewed geopolitical uncertainties after the US military intervention in Venezuela fuelled dollar demand worldwide even though the falling crude oil prices supported the Indian currency at lower level.At the interbank foreign exchange market, the rupee opened at 90.21 and touched the intra-day low of 90.50 during the session before ending at 90.28 (provisional) against the greenback, 8 paise weaker compared to the previous closing level.
This was the fourth consecutive day of fall for the Indian currency, which has lost 53 paise since December 30, 2025 when it closed at 89.75 a dollar. The rupee settled lower by 22 paise at 90.20 against the US dollar on Friday, a day after losing 10 paise on Thursday. It had lost 13 paise on the last day of the previous calender year.
Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said the rupee fell on Monday amid geopolitical tensions between the US and Venezuela.The US dollar index strengthened amid safe-haven demand, however, weakness in crude oil prices and FII inflows on Friday provided a cushion to the rupee.
Choudhary said that the declining crude oil prices may support the rupee at lower levels. “Any intervention by the RBI may also support the rupee. Traders may take cues from ISM manufacturing PMI data from the US. USD-INR spot price is expected to trade in a range of 90 to 90.60.” The US has carried out a military operation in Venezuela and deposed President Nicolas Maduro. President Donald Trump said the US would “run” the South American country and tap its vast oil reserves to sell to other nations.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24 per cent higher at 98.39. Brent crude, the global oil benchmark, was trading 0.36 per cent lower at USD 60.53 per barrel in futures trade. On the domestic equity market front, the 30-share benchmark index Sensex declined 322.39 points or 0.38 per cent to close at 85,439.62, while the Nifty fell 78.25 points or 0.30 per cent to 26,250.30.
Foreign institutional investors turned net buyers, picking up equities worth INR 289.80 crore on Friday, according to exchange data. The latest RBI data released on Friday showed India’s forex reserves jumped by USD 3.293 billion to USD 696.61 billion in the week to December 26. The overall kitty had increased by USD 4.368 billion to USD 693.318 billion in the previous reporting week.
