India Rupee Review
Ends down on bks' dlr buys for importers; firm dlr weighs
This story was originally published at 17:16 IST on 1 January 2026
Register to read our real-time news.Informist, Thursday, Jan. 1, 2026
By Kabir Sharma
MUMBAI – The rupee ended lower against the dollar Thursday as banks bought the greenback on behalf of importers, dealers said. "Not much action today (Thursday), just some routine purchases by importers," a dealer at a private-sector bank said. Volume in the foreign exchange market was lower than usual as many market participants were on leave due to New Year holidays, dealers said.
After opening at 89.9500 a dollar and moving in a range of just 13 paise during the day, the Indian unit closed at 89.9625 a dollar against Wednesday's close of 89.8700 a dollar. All major global markets were shut Thursday for New Year's Day.
The rupee opened lower against the dollar as banks purchased the greenback for importers in early trade, dealers said. Any movement was exaggerated due to the low volume in the market, they said.
A slight rise in the dollar index also weighed on the Indian unit, dealers said. The dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.28 Wednesday against 98.22 Tuesday and 98.02 Monday. The index had hit a high of 98.50 Wednesday.
Some dealers speculated that state-owned banks likely sold the greenback on behalf of the Reserve Bank of India to prevent the rupee from falling below 90 a dollar level.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.9625 | 89.9500 | 89.8650 | 89.9925 | 89.8700 |
| 1-year dlr/rupee fwd (paise) | 220.98 | 229.06 | 229.56 | 220.48 | 229.73 |
FORWARDS
The one-year dollar-rupee forward premium fell Thursday as banks sold forward dollars on behalf of exporters, dealers said.
The expectations of the interest rate differential with the US remaining narrow for longer also weighed on the premiums after minutes of the Federal Open Market Committee's December meeting hinted at just one rate cut in 2026. The Fed will hold its next meeting on Jan. 27-28, with investors currently expecting the central bank to leave its benchmark rate unchanged.
The 10-year benchmark US Treasury yields closed 4 basis points higher Wednesday, which also weighed on premiums, dealers said. US Treasury yields inched up Wednesday following a labour market report that showed an unexpected dip in applications for unemployment benefits.
At 1530 IST, the one-year exact period dollar-rupee forward premium was 2.46%, against Wednesday's close of 2.56%. On an absolute basis, the premium was 220.98 paise, against Wednesday's close of 229.72 paise.
OUTLOOK
On Friday, 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.
Traders will monitor the flows to and from Indian equities, they said. Traders will also track movements in the dollar index.
The rupee is expected to move in the range of 89.50-90.20 against the dollar on Friday. Immediate technical support for the rupee is pegged at 90.00.
India Rupee - World FX: Major currency markets shut for New Year holiday
| AT 1600 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3448 | 1.3477 | 1.3402 | 1.3448 |
| EUR/USD | 1.1732 | 1.1759 | 1.1720 | 1.1732 |
| NZD/USD | 0.5752 | 0.5792 | 0.5740 | 0.5752 |
| AUD/USD | 0.6670 | 0.6702 | 0.6660 | 0.6670 |
| USD/JPY | 156.8740 | 156.9930 | 156.3290 | 156.8740 |
| USD/CAD | 1.3725 | 1.3727 | 1.3689 | 1.3725 |
| EUR/JPY | 184.0540 | 184.2460 | 183.4000 | 184.0540 |
| CHF/USD | 1.2600 | 1.2633 | 1.2588 | 1.2600 |
| EUR/CHF | 0.9310 | 0.9319 | 0.9298 | 0.9310 |
NEW DELHI – Major currency markets across the world, including the US, the UK, and Japan, were closed on Thursday for New Year's Day, resulting in lacklustre trading volumes.
The dollar index edged higher on Wednesday as investors assessed the path of US interest rates after the release of minutes from the US Federal Reserve's December meeting. The central bank agreed to reduce rates only after a nuanced debate about the risks facing the US economy, according to the minutes of the US Federal Open Market Committee meeting on Dec. 9-10.
The dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.28 Wednesday against 98.22 Tuesday and 98.02 Monday. The index had hit a high of 98.50 on Wednesday. (Pratiksha)
India Rupee: Premium dn on bks' fwd dlr sales for exporters, rise in US ylds
| AT 1508 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.9525 | 89.9500 | 89.8650 | 89.9925 | 89.8700 |
| 1-year dlr/rupee fwd (paise) | 221.90 | 229.06 | 229.56 | 221.66 | 229.73 |
MUMBAI – The one-year dollar-rupee forward premium fell Thursday as banks sold forward dollars on behalf of exporters, dealers said. "Dollar liquidity is falling back to normal so premiums are also normalising. Exporters are booking sales as they see it (premium) going down from here," a dealer with a state-owned bank said.
The expectations of the interest rate differential with the US remaining narrow for longer also weighed on the premiums after minutes of the Federal Open Market Committee's December meeting hinted at just one rate cut in 2026. The Fed will hold its next meeting on Jan. 27-28, with investors currently expecting the central bank to leave its benchmark rate unchanged.
The 10-year benchmark US Treasury yields closed 4 basis points higher on Wednesday, which also weighed on premiums, dealers said. US Treasury yields inched up on Wednesday following a labour market report that showed an unexpected dip in applications for unemployment benefits.
At 1506 IST, the one-year exact period dollar-rupee forward premium was 2.47%, against Wednesday's close of 2.56%. On an absolute basis, the premium was 231.90 paise, against Wednesday's close of 229.72 paise. (Kabir Sharma)
India Rupee: Falls on importers' dlr buys; volume dull on New Year holiday
| AT 1414 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.9700 | 89.9500 | 89.8650 | 89.9925 | 89.8700 |
MUMBAI – The rupee was lower against the dollar as banks bought the greenback on behalf of importers, dealers said. "Volume is very low, just some importers buying for daily needs," a dealer at a state-owned bank said.
Volume in the currency market was dull due to the New Year holiday season, they said. All major global markets were shut Thursday for New Year's Day.
A slight rise in the dollar index also weighed on the Indian unit, dealers said. The dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.28 Wednesday against 98.22 Tuesday and 98.02 Monday. The index had hit a high of 98.50 on Wednesday. However, a rise in local equities supported the rupee. At 1421 IST, the benchmark Nifty 50 and the Sensex were up around 0.2% and 0.1%, respectively.
Some dealers speculated that state-owned banks likely sold the greenback on behalf of the the Reserve Bank of India to prevent the rupee from falling below 90 a dollar level. For the rest of the day, the rupee is seen moving between 89.80 and 90.10 against the greenback. Dealers peg immediate technical support for the rupee at 90.00 a dollar. (Kabir Sharma)
India Rupee: Technical levels for rupee - Jan 1
MUMBAI – At 1137 IST, the rupee was at 89.9600 per dollar. At 0900 IST, the rupee was at 89.9500 a dollar, against the previous close of 89.8700 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 | 89.99 | 89.49 | 89.27 |
| Brokerage firm | 90.50 | 90.20 | 89.50 | 89.00 |
(Kabir Sharma)
India Rupee - Asia FX: Mixed amid dull volumes on New Year holidays
NEW DELHI – Asian currencies moved on a mixed note against the dollar as volumes stayed lacklustre due to the holiday season for New Year. Most markets are closed Thursday due to the New Year's Day.
A slight rise in the dollar index weighed on the Asian units. The dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.28 Wednesday against 98.22 Tuesday and 98.02 Monday. The index had hit a high of 98.50 on Wednesday.
The South Korean won was down 0.3% against the dollar while the Taiwan dollar and the Malaysian ringgit were down 0.1%. The Chinese yuan was up 0.1%, while the Phillipine peso was up 0.2%. (Pratiksha)
India Rupee: Falls amid dull volume as importers buy dlrs; 90/$1 key support
| AT 0935 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.9200 | 89.9500 | 89.8650 | 89.9500 | 89.8700 |
NEW DELHI – The rupee fell slightly against the dollar as some banks bought dollars on behalf of importers, dealers said. However, volume in the currency market was dull due to the New Year holiday season, they said. All major global markets shut Thursday for the New Year's Day.
"There is illiquidity in the market as not enough people are there. Even slight buying (of dollars) is leading to sharp fluctuations," a dealer at a state-owned bank said.
A slight rise in the dollar index also weighed on the Indian unit, they said. The dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.28 Wednesday against 98.22 Tuesday and 98.02 Monday. The index had hit a high of 98.50 on Wednesday.
Meanwhile, some dealers expect the Reserve Bank of India to step in through dollar sales and prevent the rupee from falling past 90.00 a dollar. For the rest of the day, the rupee is seen moving between 89.80 and 90.10 against the greenback. Dealers peg immediate technical support for the rupee at 90.00 a dollar. (Pratiksha)
India Rupee: Expected range for rupee - Jan 1
NEW DELHI – 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 |
| State-owned bank | 90.20 | 89.70 |
| Private-sector bank | 90.30 | 89.80 |
| Brokerage firm | 90.20 | 89.50 |
| Brokerage firm | 89.99 | 89.49 |
(Pratiksha)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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