Weak trading on poor macroeconomic news and a strengthening American currency in the global markets saw the Indian rupee fall below the 90-mark on Friday to end the day at 90.20 against the U.S dollar, down 22 paisa from its level the previous day. The falling of the rupee is an indication of the constant outflow of foreign funds and the high demand for the dollar by importers, which burdened the investor sentiment during the session.
The day was opened by the local unit at 89.95 against the dollar, and the local unit hit a low of 90.25 and a high of 89.92 before closing at 90.20 (provisional). According to the forex analysts, the rupee was under pressure, but the low global crude oil prices and the soaring domestic equities cushioned it against stiffer losses. There is also an indication by the market players that any action taken by the Reserve Bank of India (RBI) would support the rupee in case it falls even more.
The dollar index, which gauges the performance of the greenback against a basket of major six currencies, was 0.07% higher at 98.38 indicating that the dollar is still so robust. Brent crude, the world oil standard, fell 0.58 percent at $ 60.52 a barrel in the futures trade, which relieved the import bill of India and partly counteracted the pressure of the currency.
At the home equity level, the markets were well resilient. The BSE Sensex shot up by 573.41 points to end at 85,762.01 and the NSE Nifty went up by 182 points to close at 26,328.55 as investors expressed confidence in short-term growth in equities in spite of the currency weakness.
But foreign institutional investors (FIIs) were not aggressive with equities valued at 3,268.60 crore being sold on Thursday (January 1, 2026) as per exchange data. This further drainage of foreign income added pressure to the rupee and pointed out the difficulties that the currency was going through in a world of global dollar strength and domestic market instability.
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