Indian rupee breaches ₹91/$ again amid trade pressures
What's the story
The Indian rupee has breached the 91-a-dollar mark for the second time this month, closing at 90.92 (provisional) against the greenback on Monday. The fall comes amid renewed concerns over global trade uncertainties and accelerated foreign fund withdrawal. Despite a weak US dollar and falling crude oil prices, selling pressure in domestic equities has weighed down on the Indian currency.
Market fluctuations
Rupee's performance in the interbank foreign exchange
In the interbank foreign exchange market, the rupee opened at 90.68 and fell below the key level of 91.01 against the dollar during trade. It eventually settled at a provisional rate of 90.92 against the American currency, just one paise above its all-time low closing level. On December 16, 2025, rupee had hit an intra-day low of 91.14 and a closing low of 90.93 against USD.
Ongoing challenges
Rupee's recent decline and market pressures
The rupee has been on a downward trend for the fourth consecutive session, amid continued FII outflows and weak domestic markets. On Friday, it had plummeted by 44 paise to close near its lowest level at 90.78 against the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, attributed this decline to dollar demand from corporates and hedgers further pressuring the rupee.
Global influences
Geopolitical tensions and their impact on rupee
Choudhary also noted that geopolitical tensions between the US and European nations over Greenland's control could keep the rupee biased downward. He said, "FII outflows and uncertainty over trade deal talks may also pressurize the rupee." However, he added a weak dollar and easing tensions between the US and Iran could support it at lower levels.
Market outlook
Current market conditions and future projections
The dollar index, which gages the greenback's strength against six currencies, was trading 0.23% lower at 98.97. Brent crude oil, the global benchmark for oil prices, was down by 0.94% at $63.53 per barrel in futures trade. Choudhary projected the USD-INR spot price to trade "in a range of ₹90.60 to ₹91.30," amid these market conditions and geopolitical developments impacting currency values globally.