India Rupee Review
Ends down, below 90/$1 despite RBI's active intervention
This story was originally published at 16:49 IST on 8 January 2026
Register to read our real-time news.Informist, Thursday, Jan. 8, 2026
By Pratiksha
NEW DELHI – Active intervention by the Reserve Bank of India notwithstanding, the rupee ended lower against the dollar Thursday, closing below the 90-per-dollar mark, as banks persistently bought the greenback on behalf of oil marketing companies and other importers, dealers said. A rise in the dollar index also weighed on the Indian unit, they said.
"RBI was very much the only seller (of dollars) in the market today (Thursday)," a dealer at a private-sector bank said. "But demand (for dollars) was good and that played out constantly."
After touching a high of 89.7300 a dollar earlier in the day, the rupee settled at 90.0175 Thursday, almost 0.2% lower than 89.8800 Wednesday. Other Asian currencies fell 0.1-0.6% against the dollar, with the Thai baht being the worst performer.
The rupee started the day weaker against the dollar as the dollar index edged higher after mixed US economic data made markets cautious ahead of Friday's non-farm payrolls report. Data released Thursday showed US job openings fell more than expected in November while hiring eased. However, services sector activity unexpectedly picked up in December.
At 1530 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.75, up against 98.73 Wednesday and 98.60 Tuesday. A decline in other Asian currencies also weighed on the Indian unit, they said.
However, the rupee gave up all losses and rose to the day's high of 89.7300 shortly after opening, as state-owned banks stepped in to sell dollars, likely on behalf of the central bank, dealers said. The central bank had intervened heavily in the spot market on Wednesday as well. However, its intervention on Thursday was not as aggressive as the previous session, according to dealers. The RBI likely sold around $800 million-$1 billion in the spot market Thursday compared to around $2 billion Wednesday, dealers said.
Market participants expressed a sense of confusion over the central bank's recent intervention strategy, wherein it intervenes unexpectedly, at times aggressively, to pull the rupee higher. While some said the central bank is likely looking to drive out one-sided speculative bets from the market, others said the RBI may be looking to keep the Indian unit well-supported amidst looming uncertainty over the India-US trade deal.
Some said the RBI's recent intervention playbook seems to be intolerant to constant rupee depreciation. "The morning move (of rupee) suggested that the RBI does not want the rupee to be comfortable around 90.00 levels," a dealer at a state-owned bank said. "But then above 90.00 levels are not holding for long."
However, gains for the Indian unit were short-lived as importers rushed to buy dollars, noting the relatively lower dollar-rupee rates, dealers said. "Importers will continue to hedge till the time there is no reprieve on the tariff front," a dealer at a foreign bank said.
Investors' risk sentiment was further dampened after Republican Senator Lindsey Graham announced on Thursday that US President Donald Trump has approved the bipartisan Russia Sanctions Bill that gives sweeping authority to the president to penalise Russia's trading partners, including India, China and Brazil, over their purchase of Russian oil. The bipartisan legislation would require the US to impose a 500% tariff on all goods imported from any country that continues to purchase Russian oil, petroleum products or uranium.
The Indian unit was also weighed by a slump in domestic equities and hit a low of 90.1300 a dollar, dealers said. The Nifty 50 and Sensex ended 1% and 0.9% lower, respectively, on Thursday. Meanwhile, dealers said the RBI likely sold dollars at around 90.13 as well, which helped the Indian currency erase some of its losses.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.0175 | 89.9500 | 89.7300 | 90.1300 | 89.8800 |
| 1-year dlr/rupee fwd (paise) | 246.55 | 237.26 | 247.85 | 237.26 | 238.65 |
FORWARDS
The one-year dollar-rupee forward premium ended higher on Thursday due to a fall in US Treasury yields and forward dollar purchases by importers, dealers said. Lack of dollar-rupee buy-sell swaps by the RBI, in order to neutralise the impact of its spot intervention and avert pushing out rupee liquidity, also supported forward premiums, they said.
US Treasury yields declined 3 basis points on Wednesday in volatile trade as investors assessed US economic data that presented a mixed outlook on the economy before Friday's much awaited employment report for December.
Market participants await the release of labour market data from the US. The data, due Friday, is expected to show that employers added 60,000 workers in December. The unemployment rate is expected to decline to 4.5%, after an unexpected increase to a four-year high of 4.6% in November.
At 1530 IST, the one-year exact period dollar-rupee forward premium was 2.74%, higher than 2.64% Wednesday. On an absolute basis, the premium was 246.55 paise, against Wednesday's close of 238.65 paise.
OUTLOOK
On Friday, the rupee may take cues from movement in the dollar index and Asian currencies, dealers said. Market participants will watch out for the RBI's intervention in the spot market, especially after noting its active intervention in the last two days.
Market participants will also keep a close eye on further developments related to the India-US trade deal. "Today's news of 500% tariff on India was not much of a market mover but if more negative news starts coming in, we may see some meaningful reaction on rupee," a dealer at a brokerage firm said.
Importers may continue to buy dollars fearing depreciation in the local unit, they said. The rupee is likely to move in a range of 89.80-90.30 against the dollar. Immediate technical support for the rupee is pegged at 90.30.
India Rupee - World FX: Dollar index steady ahead of key jobs data; yen flat
| AT 1415 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3442 | 1.3466 | 1.3435 | 1.3456 |
| EUR/USD | 1.1673 | 1.1684 | 1.1669 | 1.1676 |
| NZD/USD | 0.5746 | 0.5781 | 0.5745 | 0.5769 |
| AUD/USD | 0.6696 | 0.6725 | 0.6691 | 0.6720 |
| USD/JPY | 156.6910 | 156.9520 | 156.4610 | 156.7650 |
| USD/CAD | 1.3884 | 1.3888 | 1.3858 | 1.3860 |
| EUR/JPY | 182.9090 | 183.2500 | 182.7180 | 182.9950 |
| CHF/USD | 1.2527 | 1.2550 | 1.2521 | 1.2532 |
| EUR/CHF | 0.9318 | 0.9321 | 0.9303 | 0.9315 |
MUMBAI – The dollar index was steady ahead of Friday's key jobs report, with rising geopolitical tensions keeping sentiment in check. Traders await the US employment report for December for further cues ahead of the US Federal Open Market Committee's meeting scheduled for the end of the month. The data on Friday is expected to show that employers added 60,000 workers in December. The unemployment rate is expected to decline to 4.5%, after an unexpected increase to a four-year high of 4.6% in November.
At 1412 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.77, against 98.73 Wednesday and 98.59 Tuesday.
The Australian dollar fell 0.3% against the greenback as Australia's trade surplus narrowed to A$2.9 billion in November from A$4.3 billion a month ago, according to foreign trade data published by the Australian Bureau of Statistics on Thursday.
Details show Australia's exports fell 2.9% on month in November, against a rise of 2.8% seen a month earlier. Meanwhile, imports grew 0.2% on a monthy basis in November, compared to a rise of 2.4% seen in October, which also weighed on the Australian currency.
The Japanese yen remained largely flat against the US currency after falling earlier in the day following the release of wages data from the world's fourth-largest economy, which showed a sharp decline in real wages in November. Japan's Ministry of Health, Labour and Welfare said on Thursday that full-time wages rose 0.5% on year in November, the slowest pace since December 2021, and well below market expectations of a 2.3% increase. Wages had risen 2.5% in October, revised down from an initial 2.6%. Japan's slowing wage growth sets the stage for easing price pressures and a potential inflation slowdown. This reduces the likelihood of further rate hikes by Bank of Japan this year.
The euro remained steady against the dollar, while the Canadian dollar fell 0.2% against the US currency. (Vaishali Tyagi and Kabir Sharma)
India Rupee: Premium up on importers' fwd dlr buys, rise in US ylds
| AT 1340 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.0450 | 89.9500 | 89.7300 | 90.0775 | 89.8800 |
| 1-year dlr/rupee fwd (paise) | 247.16 | 237.26 | 247.85 | 237.26 | 238.65 |
MUMBAI – The one-year dollar-rupee forward premium rose on Thursday due to a fall in US Treasury yields and forward dollar purchases by importers, dealers said. "The volatility in spot is pushing importers to book forwards, there is no clarity on the direction of rupee as of now," a dealer at a state-owned bank said.
Some banks bought dollars for forward delivery on behalf of importers, noting volatility in the spot rupee, which supported the forward premiums, dealers said. The rupee rose to a high of 89.7300 earlier in the day before erasing all gains. It was trading at 90.0700 per dollar at 1336 IST.
US Treasury yields declined by 3 basis points on Wednesday in volatile trade as investors assessed economic data that presented a mixed outlook on the economy before Friday's much awaited employment report for December.
Market participants await the release of labour market data from the US. The data on Friday is expected to show that employers added 60,000 workers in December. The unemployment rate is expected to decline to 4.5%, after an unexpected increase to a four-year high of 4.6% in November.
At 1337 IST, the one-year exact period dollar-rupee forward premium was 2.75%, higher than 2.64% Wednesday. On an absolute basis, the premium was 247.85 paise, against Wednesday's close of 238.65 paise. (Kabir Sharma)
India Rupee: Erases gains on banks' dlr buys for oil cos; firm dlr weighs
| AT 1238 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.8500 | 89.9500 | 89.7300 | 89.9825 | 89.8800 |
| 1-year dlr/rupee fwd (paise) | 243.35 | 237.26 | 243.74 | 237.26 | 238.65 |
MUMBAI – The rupee erased early gains and was steady against the dollar on Thursday as banks' dollar sales on behalf of the Reserve Bank of India were offset by some banks' dollar purchases for oil marketing companies, dealers said.
"They (RBI) gave a signal in the morning so market knows when to stop," a dealer at a private bank said. "Oil demand is there as always because of the geopolitical worries," he said.
On the back of the strong intervention from RBI, traders sold the greenback to trim their long dollar positions, which also supported the local unit, dealers said. However, some banks stepped in to buy dollars on behalf of oil marketing companies, noting the relatively lower dollar-rupee levels, which limited gains for the Indian unit, dealers said.
A firm dollar limited the gains in the Indian unit, dealers said. The dollar remained firm on Thursday as investors assessed a range of data indicating that the US economy is in a fragile state before the key jobs report on Friday, with increasing geopolitical tensions tempering sentiment. At 1007 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.71, against 98.73 Wednesday and 98.59 Tuesday.
For the rest of the day, the rupee is seen moving between 89.70 and 90.20 against the greenback. Dealers peg immediate technical resistance for the rupee at 89.7000 a dollar and support at 90.30 a dollar. (Kabir Sharma)
India Rupee: Rises on PSU banks' dollar sales for RBI, fall in crude prices
| AT 1005 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.8125 | 89.9500 | 89.7300 | 89.9825 | 89.8800 |
| 1-year dlr/rupee fwd (paise) | 237.26 | 237.26 | 237.26 | 237.26 | 238.65 |
MUMBAI – The rupee rose against the dollar on Thursday as some state-owned banks sold the greenback, likely on behalf of the Reserve Bank of India, dealers said. "I guess they (RBI) are uncomfortable with rupee depreciating on a daily basis," a dealer at a brokerage firm said.
On the back of the strong intervention from RBI, traders sold the greenback to trim their long dollar positions, which also supported the local unit, dealers said. However, some banks stepped in to buy dollars on behalf of oil marketing companies, noting the relatively lower dollar-rupee levels, which limited gains for the Indian unit, dealers said.
A firm dollar limited the gains in the Indian unit, dealers said. The dollar remained firm on Thursday as investors assessed a range of data indicating that the US economy is in a fragile state before the key jobs report on Friday, with increasing geopolitical tensions tempering sentiment. At 1007 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.71, against 98.73 Wednesday and 98.59 Tuesday.
However, a fall in crude oil prices supported the rupee, dealers said. Oil prices fell overnight after US President Donald Trump announced that Venezuela's interim leaders would hand over up to 50 million barrels of crude oil to the US, sparking worries about a rise in global supply.
For the rest of the day, the rupee is seen moving between 89.70 and 90.20 against the greenback. Dealers peg immediate technical resistance for the rupee at 89.7000 a dollar and support at 90.30. (Kabir Sharma)
India Rupee - Asia FX: Mixed as dollar steady; Philippines peso up 0.4%
MUMBAI – Asian currencies were mixed against the dollar as the greenback remained steady after the release of labour market data from the US. At 0925 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.71, against 98.73 Wednesday and 98.59 Tuesday.
The Australian dollar fell 0.1% against the dollar, pulling back from a 15-month peak after reports indicated that Australia's exports declined in November, and the nation's trade surplus unexpectedly diminished.
After falling to a record low on Wednesday, the Philippines peso was up 0.4% on Thursday. The Bangko Sentral said gross reserves reached $110.9 billion at the end of December 2025, higher than the $106.3 billion seen in the same period in 2024. The central bank said this was equivalent to 7.4 months worth of imports of goods and payments of services and primary income.
The Malaysian ringgit, the South Korean won, and the Indonesian rupiah were down 0.1?ch against the dollar. (Kabir Sharma)
India Rupee: Expected range for rupee - Jan 8
MUMBAI – Following are the expected support and resistance levels for the rupee on Thursday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| Private-sector bank | 90.10 | 89.75 |
| Private-sector bank | 90.30 | 90.80 |
| Brokerage firm | 90.00 | 89.80 |
| Brokerage firm | 90.15 | 89.65 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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