India Rupee Review
Ends higher on bks' dlr sales for RBI, exporters
This story was originally published at 16:21 IST on 30 December 2025
Register to read our real-time news.Informist, Tuesday, Dec. 30, 2025
By Kabir Sharma
MUMBAI – The rupee ended higher against the dollar on Tuesday as banks sold the greenback on behalf of exporters and the Reserve Bank of India, dealers said. Volume in the foreign exchange market was lower than usual as many market participants were on leave due to year-end holidays, they said.
"They (RBI) sold a little in the second half but since the overall volume was low, it moved a lot," a dealer at a state-owned bank said.
After opening at 89.9325 a dollar and moving in a range of 25 paise on Tuesday, the Indian unit closed the day at 89.7900 a dollar against Monday's close of 89.9750 a dollar.
The rupee was steady against the dollar as dollar purchases by banks for Indian corporates and oil marketing companies were offset by their dollar sales on behalf of exporters, dealers said.
Dealers said oil marketing companies stocked up on the commodity after fears of an increase in prices due to hurdles in peace talks between Russia and Ukraine. Oil prices ended over $1 a barrel higher on Monday as Russia blamed Ukraine for an attack on President Vladimir Putin's residence, while traders prepared for possible supply disruptions in West Asia amid escalating tensions in Yemen.
Outflows from local equity and debt markets also weighed on the Indian unit, dealers said. Barring Monday, there were net outflows from markets on all days of last week. According to data on National Securities Depository Ltd., there were outflows of nearly $1 billion from Indian financial markets in the week ended Friday alone.
In the second half of the day as the rupee fell to the day's low of 89.9700 a dollar, state-owned banks sold the greenback on behalf of the Reserve Bank of India to prevent it from falling beyond 90 a dollar level.
The dollar remained broadly weak against major currencies on Tuesday, which supported the Indian unit, as expectation of further rate cuts by the US Federal Reserve next year weighed on the currency. Markets are waiting for US President Donald Trump to select a new Fed chair to succeed Jerome Powell, whose tenure ends in May.
At 1602 IST, the dollar index, which measures strength in the dollar against a basket of six major currencies, was at 97.96, against 98.02 Monday and 98.05 Friday.
Market participants now await minutes of the Federal Reserve's last meeting, due later in the day. The US central bank reduced interest rates earlier this month and forecast only one additional cut for next year, while traders have factored in at least two more.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.7900 | 89.9325 | 89.7175 | 89.9700 | 89.9750 |
| 1-year dlr/rupee fwd (paise) | 240.45 | 245.92 | 249.02 | 240.26 | 252.50 |
FORWARDS
The one-year dollar-rupee forward premium fell on Tuesday as banks sold forward dollars on behalf of exporters after rupee liquidity in the system improved, dealers said. Liquidity improved on account of inflows from the Reserve Bank of India's open market purchase of bonds, dealers said. The Reserve Bank of India bought gilts worth INR 500 billion on Monday.
Premiums fell even as US Treasury yields fell slightly on Monday. Treasury yields fell at the start of the last week of 2025, with the market attentive to any significant indicators of the health of the US economy.
At 1530 IST, the one-year exact period dollar-rupee forward premium was 2.66%, against Monday's close of 2.81%. On an absolute basis, the premium was 240.45 paise, against Monday's close of 252.50 paise.
OUTLOOK
On Wednesday, the rupee is expected to open steady against the dollar as market participants remained cautious about developments in the US-India trade deal. Following the rupee's sharp appreciation in the previous week, banks will also be cautious about the RBI's intervention through dollar sales.
Year-end demand for dollars from Indian corporates is also expected to weigh on the local currency. Traders will monitor the flows to and from Indian equities, they said. Traders will also track movements in the dollar index post the release of the minutes of Fed's December meeting later on Tuedsay.
The rupee is expected to move in the range of 89.50-90.20 against the dollar. Immediate technical support for the rupee is pegged at 90.00.
India Rupee: Premium falls as exporters sell dollars for forward delivery
| AT 1400 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.8175 | 89.9325 | 89.7300 | 89.9700 | 89.9750 |
| 1-year dlr/rupee fwd (paise) | 243.95 | 245.92 | 249.02 | 243.45 | 252.50 |
India Rupee: Premium falls as exporters sell dollars for forward delivery
MUMBAI – The one-year dollar-rupee forward premium fell on Tuesday as banks sold forward dollars on behalf of exporters after rupee liquidity in the system improved, dealers said. "Inflows from RBI's OMOs have come today, so there is enough liqiudity in the system now," a dealer at a brokerage firm said.
Liquidity improved on account of inflows from the Reserve Bank of India's open market purchase of bonds, dealers said. The Reserve Bank of India bought gilts worth INR 500 billion on Monday.
Premiums fell even as US Treasury yields fell slightly on Monday. Treasury yields fell at the start of the last week of 2025, with the market attentive to any significant indicators of the health of the US economy.
The announcement of a swap auction by the RBI also weighed on premiums, dealers said. Amid excess dollar liquidity in the system, the RBI said it would conduct a three-year, dollar-rupee buy-sell swap auction on Jan. 13 for $10 billion.
At 1400 IST, the one-year exact period dollar-rupee forward premium was 2.70%, against Monday's close of 2.81%. On an absolute basis, the premium was 243.95 paise, against Monday's close of 252.50 paise. (Kabir Sharma)
India Rupee: Rises on bks' dlr sales for exporters, oil cos' dlr buys weigh
| AT 1314 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.8175 | 89.9325 | 89.7650 | 89.9700 | 89.9750 |
MUMBAI – The rupee rose against the dollar on Tuesday as banks sold dollars on behalf of exporters, dealers said. "They were hoping it would break 90 (90 a dollar), but since they got a signal that it's not going to break, they sold at lower levels," a dealer at a state-owned bank said.
The upside for the rupee was limited as some banks bought the greenback for oil marketing companies and Indian corporates, dealers said. Oil marketing companies stocked up on the commodity after fears of an increase in prices due to hurdles in peace talks between Russia and Ukraine, they added.
Outflows from the local equity and debt markets also weighed on the Indian unit, dealers said. Volume in the foreign exchange market was lower than usual due to some traders being on leave for year-end holidays.
If the rupee approaches the 90-a-dollar level, dealers expect the Reserve Bank of India to intervene through dollar sales to prevent any runaway depreciation, they said. A fall in local equities also weighed on the Indian unit, dealers said. At 1312 IST, the Nifty 50 and the Sensex were down 0.2?ch.
For the rest of the day, the rupee is seen moving between 89.30 and 90.00 against the greenback. Dealers peg immediate technical support for the rupee at 90.00 a dollar. (Kabir Sharma)
India Rupee: Technical levels for rupee - Dec 30
MUMBAI – At 1210 IST, the rupee was at 89.9250 per dollar. At 0900 IST, the rupee was at 89.9325 a dollar, against the previous close of 89.9750 a dollar. Following are the key support and resistance levels for the rupee as provided by leading banks and brokerages:
| Participants | S2 | S1 | R1 | R2 |
| Private-sector bank | 90.30 | 90.00 | 89.50 | 89.35 |
| Brokerage firm | 90.30 | 90.00 | 89.40 | 89.27 |
| Brokerage firm | 90.20 | 90.10 | 89.45 | 89.30 |
(Kabir Sharma)
India Rupee: Steady; exporters' dlr sales offset oil cos', corporates' buys
| AT 0938 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.9450 | 89.9325 | 89.8900 | 89.9575 | 89.9750 |
| 1-year dlr/rupee fwd (paise) | 247.52 | 245.92 | 247.52 | 245.92 | 252.50 |
MUMBAI – The rupee was steady against the dollar as dollar purchases by banks for Indian corporates and oil marketing companies was offset by their dollar sales on behalf of exporters, dealers said. Volume in the foreign exchange market was lower than usual due to some traders being on leave for year-end holidays.
"Not much volume today, we expect only mild moves. Corporates and oilers are buying but the exporters are sitting steady at the other end," a dealer at a private sector bank said.
Dealers said oil marketing companies stocked up on the commodity after fears of an increase in prices due to hurdles in peace talks between Russia and Ukraine. Oil prices ended over $1 a barrel higher on Monday as Russia blamed Ukraine for an attack on President Vladimir Putin's residence, while traders prepared for possible supply disruptions in West Asia amid escalating tensions in Yemen.
Outflows from local equity and debt markets also weighed on the Indian unit, dealers said. Barring Monday, there were net outflows from markets on all days of last week. According to data on National Securities Depository Ltd., there were outflows of nearly $1 billion from Indian financial markets in the week ended Friday alone.
If the rupee approaches the 90-a-dollar level, dealers expect the Reserve Bank of India to intervene through dollar sales to prevent any runaway depreciation, they said. A fall in local equities also weighed on the Indian unit, dealers said. At 0930 IST, the Nifty 50 and the Sensex were down 0.2?ch.
For the rest of the day, the rupee is seen moving between 89.30 and 90.00 against the greenback. Dealers peg immediate technical support for the rupee at 90.00 a dollar. (Kabir Sharma)
India Rupee: Expected range for rupee - Dec 30
MUMBAI – Following are the expected support and resistance levels for the rupee on Tuesday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| State-owned bank | 90.25 | 89.75 |
| Private-sector bank | 90.10 | 89.45 |
| Brokerage firm | 90.20 | 89.60 |
| Brokerage firm | 90.25 | 89.70 |
(Kabir Sharma)
India Rupee - Asia FX: Mixed; Thai baht up despite efforts to curb rise
MUMBAI – Asian currencies were mixed against the dollar on Tuesday as the greenback was steady but broadly weak on expectations of further rate cuts by the US Federal Reserve. At 0824 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.02, against 98.02 Monday and 98.05 Friday.
The Thai baht was up 0.2% against the dollar. The Bank of Thailand has increased oversight of foreign-exchange inflows by enhancing documentation requirements for major transactions of $200,000 or more, intending to alleviate pressure from the baht strengthening and avert unwelcome transactions.
Pimpan Charoenkwan, the assistant governor for financial markets at the BoT, said the central bank had enhanced scrutiny of incoming FX transactions to avert situations in which funds entering Thailand do not align with the declared origins or where transactions might serve unwelcome purposes.
The South Korean won was down 0.1% against the greenback. Korean officials last week implemented measures to strengthen the currency as it approached the crucial 1,500 per dollar mark due to foreign withdrawals and concerns that additional US investment — linked to tariff talks — might increase pressure.
South Korea's initiatives involve verbal engagement and the anticipation of actions like strategic hedges by the National Pension Service.
The Taiwan dollar and the Philippines peso were down 0.1?ch against the dollar, while the Indonesian rupia, the Chinese yuan, and the Malaysian ringgit rose 0.1?ch. (Kabir Sharma)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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