On December 29, 2025, the Indian rupee slipped by 8 paise, closing at 89.98 against the US dollar. The decline was driven by continuous foreign fund outflows and a weak trend in domestic equity markets. At the interbank foreign exchange, the rupee opened at 89.95 and moved between an intraday low of 89.99 and a high of 89.88 before settling lower. On Friday, the local currency had already declined by 19 paise, ending the session at 89.90.
Indian Rupee Faces Market Pressure
Forex traders said sustained selling by foreign investors affected market sentiment, while strong dollar demand from importers added further pressure on the rupee. Experts believe the movement of the rupee in the coming days may depend on US economic data, including the release of the FOMC minutes and core PCE inflation figures. The USD/INR pair is expected to trade between 89.60 and 90.20.
The dollar index remained nearly flat at 98.03. Brent crude rose 1.48 per cent to USD 61.54 per barrel. Indian equities ended lower during the session, with the Nifty falling 100.20 points and the Sensex declining 345.91 points. Meanwhile, India’s forex reserves rose by USD 4.368 billion, reaching USD 693.318 billion.
