Rupee Falls 10 Paise to 90.44 Against Dollar on Outflows

ECONOMY

Overview

Indian rupee declined for a third consecutive session Friday, falling 10 paise to trade at 90.44 against the US dollar. Persistent foreign fund outflows and a strengthening dollar weighed on the domestic currency. Widening trade deficit figures and global inflation data influencing Fed rate cut expectations added pressure, though falling crude oil prices and positive equity markets provided some support.

The Indian rupee dropped 10 paise on Friday, hitting 90.44 against the US dollar. This marks the third consecutive session of losses for the domestic currency.

Rupee Under Pressure

Persistent foreign fund outflows and a strengthening global greenback continued to exert downward pressure on the rupee. It opened at 90.37 before declining further to the day's low of 90.44.

Widening Trade Gap

Official data released on Thursday showed India’s trade deficit widening to $25.04 billion in December 2025, against a deficit of $24.53 billion in November and $22 billion in December 2024. This widening gap adds to the pressure on the currency.

Global Dollar Strength

Globally, the dollar index saw a marginal dip but remained strong, following US inflation data for December. This data has lowered expectations of an immediate interest rate cut by the Federal Reserve, supporting the dollar.

Equity Market Support

Despite the currency's weakness, domestic equity markets offered some support. The benchmark Sensex advanced 210.04 points to 83,592.75, and the Nifty gained 34.65 points to reach 25,700.25. Declining crude oil prices also provided a cushion against sharper losses.

Foreign institutional investors, however, remained net sellers on Wednesday, offloading shares worth ₹4,781.24 crore, indicating caution despite the equity market's positive trend.

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