India Rupee Review
Ends higher but pares early gains as importers buy dlrs
This story was originally published at 16:38 IST on 6 January 2026
Register to read our real-time news.Informist, Tuesday, Jan. 6, 2026
By Pratiksha
NEW DELHI – The rupee ended higher against the dollar Tuesday, snapping a four-day falling streak, but erased a considerable portion of its gains from earlier in the session as importers persistently bought the greenback. The Reserve Bank of India's likely dollar sales ensured the Indian currency remained well-supported, they said.
"The market was very much on the biddish (buying dollars) side but there were also offers (for dollars) by nats (nationalised banks) around 90.25, which kept the rupee in a range," a dealer at a state-owned bank said.
After touching a high of 90.0800 a dollar, the Indian unit settled at 90.1650 on Tuesday, against 90.2775 on Monday. The rupee traded in a range of 17 paise during the day.
The rupee started the day on a positive note, opening 6 paise higher against the dollar, as the dollar index came off its near-four-week highs after data released Monday showed US manufacturing activity declined to a 14-month low in December, dealers said.
The US manufacturing Purchasing Managers' Index fell to 47.9 in December, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing. It was the 10th straight month of contraction. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.
At 1530 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.34, down from 98.36 Monday and 98.43 Friday. The index had hit a high of 98.86 earlier on Monday, the highest since Dec. 10.
The Indian unit got a further boost shortly after opening and hit its day's high. Some dealers speculated state-owned banks sold dollars in early trade, likely on behalf of the RBI, while some pointed to dollar sales by foreign banks, likely for foreign fund inflows into a corporate.
However, the Indian unit gave up most of its gains during the day as banks persistently bought the greenback on behalf of importers, who wanted to make the most of the relatively lower dollar-rupee levels, dealers said. Dealers said importers bought the greeback fearing further depreciation in the local unit amid the looming uncertainty over the India-US trade deal. US President Donald Trump Sunday said the US could raise tariffs on India if New Delhi does not help address Washington's concerns about buying Russian oil.
Meanwhile, some state-owned banks stepped in to sell dollars around 90.24 a dollar level, likely on behalf of the central bank, which ensured the Indian unit does not fall against the greenback, dealers said. However, the intervention was not aggressive in nature, they said.
"RBI is sort of delaying a large depreciation in the rupee. Overall, the direction for rupee remains on the falling side," a dealer at a state-owned bank said. "No matter how large the intervention is, till the time the trade deal does not happen, the buying pressure will continue."
A fall in domestic equities also exerted downward pressure on the local unit, dealers said. On Tuesday, the Sensex and Nifty 50 ended 0.4% and 0.3% lower, respectively.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.1650 | 90.2150 | 90.0800 | 90.2475 | 90.2775 |
| 1-year dlr/rupee fwd (paise) | 235.77 | 234.90 | 238.29 | 232.84 | 237.79 |
FORWARDS
The one-year dollar-rupee forward premium ended slightly lower as some dealers speculated the RBI likely sold dollars for forward delivery to neutralise its spot interventions and avert draining out rupee liquidity.
However, an overnight fall in US Treasury yields supported the forward premiums, they said. US Treasury yields fell after data released Monday showed US manufacturing activity declined to a 14-month low in December. Further, some banks bought dollars for forward delivery on behalf of importers, noting appreciation in the spot rupee, which also supported the forward premiums, dealers said.
Traders now await release of key economic data in the US this week, including the non-farm payrolls data on Friday, for cues on the US Federal Reserve's interest rate path. At 1530 IST, the one-year exact period dollar-rupee forward premium was 2.61%, slightly lower from 2.63% on Monday. On an absolute basis, the premium was 235.77 paise, against Monday's close of 237.79 paise.
OUTLOOK
On Wednesday, the rupee may take cues from movement in the dollar index after the release of US services Purchasing Managers' Index, due later in the day, dealers said. Market participants will also keep a close eye on further developments related to the US' attack on Venezuela.
Further, traders will closely monitor developments relating to the India-US trade deal. They expect sustainable relief for the rupee only after the deal comes through.
Importers may continue to buy dollars, fearing further depreciation in the local unit, they said. However, they expect the central bank to intervene through dollar sales, to prevent excessive fall in the rupee. "I think depreciation towards 91.00 again is more likely for rupee than a recovery in the near-term," a dealer at a state-owned bank said. "RBI can try to postpone it but the broad movement seems to be on that side."
The rupee is likely to move in a range of 90.00-90.50 against the dollar. Immediate technical support for the rupee is pegged at 90.30 and resistance at 90.00.
India Rupee - World FX: Dollar index falls post weak econ data; yen rises
| AT 1425 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3557 | 1.3568 | 1.3529 | 1.3539 |
| EUR/USD | 1.1732 | 1.1743 | 1.1711 | 1.1721 |
| NZD/USD | 0.5794 | 0.5810 | 0.5780 | 0.5785 |
| AUD/USD | 0.6724 | 0.6739 | 0.6704 | 0.6714 |
| USD/JPY | 156.3260 | 156.7950 | 156.1650 | 156.3990 |
| USD/CAD | 1.3758 | 1.3777 | 1.3752 | 1.3770 |
| EUR/JPY | 183.4000 | 183.6470 | 183.1500 | 183.3200 |
| CHF/USD | 1.2629 | 1.2649 | 1.2615 | 1.2631 |
| EUR/CHF | 0.9289 | 0.9291 | 0.9277 | 0.9277 |
NEW DELHI – The dollar index came off a near-four-week high after data released Monday showed US manufacturing activity declined to a 14-month low in December. The US manufacturing Purchasing Managers' Index dropped to 47.9 in December, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing. It was the 10th straight month that the PMI remained below the 50 threshold. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.
Further, Minneapolis Federal Reserve President Neel Kashkari on Monday said inflation was slowly trending down but there was a risk that the jobless rate could "pop" higher. His comments boosted expectation of further rate cuts in the world's largest economy, further weighing on the greenback.
At 1425 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.27, down from 98.36 Monday and 98.43 Friday. The index had hit a high of 98.86 earlier on Monday, the highest since Dec. 10.
The Japanese yen was up 0.1% against the dollar. Bank of Japan Governor Kazuo Ueda said on Monday the central bank will continue to hike interest rates if economic and price developments move in line with its forecasts. Tracking weakness in the dollar index, the pound sterling also rose 0.1%, while the Australian dollar was up 0.2%. The euro was flat against the dollar.
Market participants now await a raft of US economic data, particularly the jobs report due on Friday, for clues on how many times the Federal Reserve is likely to cut interest rates in 2026. (Pratiksha)
India Rupee: Premium steady; importers' fwd dlr buys, fall in US yields aid
| AT 1344 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.1975 | 90.2150 | 90.0800 | 90.2475 | 90.2775 |
| 1-year dlr/rupee fwd (paise) | 235.90 | 234.90 | 238.29 | 232.84 | 237.79 |
NEW DELHI – The one-year dollar-rupee forward premium was largely steady as traders await release of key economic data in the US this week, including the non-farm payroll data on Friday, for cues on the US Federal Reserve's interest rate path, dealers said.
However, an overnight fall in US Treasury yields supported the forward premiums, they said. US yields fell after data released Monday showed US manufacturing activity declined to a 14-month low in December. The US manufacturing Purchasing Managers' Index dropped to 47.9 in December, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing. It was the 10th straight month that the PMI remained below the 50 threshold. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.
Further, some banks bought dollars for forward delivery on behalf of importers, noting appreciation in the spot rupee, which also supported the forward premiums, dealers said. The rupee rose to a high of 90.0800 earlier in the day.
Meanwhile, some dealers speculated the Reserve Bank of India likely sold dollars for forward delivery to neutralise its spot interventions and avert draining out rupee liquidity, which weighed on the forward premiums.
At 1344 IST, the one-year exact period dollar-rupee forward premium was 2.62%, broadly steady from 2.63% on Monday. On an absolute basis, the premium was 235.90 paise, against Monday's close of 237.79 paise. (Pratiksha)
India Rupee: Erases most gains as banks continuously buy dlrs for importers
| AT 1300 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.2325 | 90.2150 | 90.0800 | 90.2475 | 90.2775 |
NEW DELHI – The rupee erased most of its earlier gains against the dollar as banks persistently bought the greenback on behalf of importers, who wanted to make the most of the relatively lower dollar-rupee levels, dealers said. The Indian unit hit a high of 90.0800 a dollar earlier in the day.
"There are lot of underlying bids (dollar demand) in the market," a dealer at a state-owned bank said. "Any level around 90.00 is a good opportunity to buy (dollars)."
Earlier in the day, the Indian unit rose sharply as the dollar index came off its near-four-week highs after data released Monday showed US manufacturing activity declined to a 14-month low in December, dealers said. At 1300 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.21, down from 98.36 Monday and 98.43 Friday. The index had hit a high of 98.86 on Monday, the highest since Dec. 10.
Some dealers speculated state-owned banks also sold dollars in the morning, likely on behalf of the Reserve Bank of India, which also pushed the Indian currency higher. However, some dealers pointed to dollar sales by foreign banks, likely for foreign fund inflows into a corporate, which supported the rupee.
A fall in domestic equities also weighed on the Indian currency, some dealers said. At 1300 IST, the Sensex and Nifty 50 were down 0.4% and 0.3%, respectively.
For the rest of the day, the rupee is seen moving between 90.00 and 90.40 against the greenback. Dealers peg immediate technical resistance for the rupee at 90.00 a dollar and support at 90.30. (Pratiksha)
India Rupee: Technical levels for rupee - Jan 6
NEW DELHI – At 1130 IST, the rupee was at 90.1700 per dollar. At 0900 IST, the rupee was at 90.2150 a dollar, against the previous close of 90.2775 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 |
| State-owned bank | 90.50 | 90.30 | 89.90 | 89.70 |
| Private-sector bank | - | 90.50 | 90.00 | - |
| Brokerage firm | 90.50 | 90.30 | 89.80 | 89.50 |
| Brokerage firm | 90.50 | 90.30 | 90.00 | 89.80 |
(Pratiksha)
India Rupee: Rises sharply as dollar index eases post weak economic data
| AT 0928 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 90.1100 | 90.2150 | 90.1000 | 90.2225 | 90.2775 |
NEW DELHI – The rupee rose sharply against the dollar as the dollar index came off a near-four-week high after data released Monday showed US manufacturing activity declined to a 14-month low in December, dealers said.
The US manufacturing Purchasing Managers' Index dropped to 47.9 in December, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing. It was the 10th straight month that the PMI remained below the 50 threshold. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.
At 0928 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.21, down from 98.36 Monday and 98.43 Friday. The index had hit a high of 98.86 earlier on Monday, the highest since Dec. 10.
However, dealers expect importers to step in through dollar purchases, noting the relatively lower dollar-rupee rate, which may cap gains for the local unit. "Till the time there is no clarity on the trade deal, the buying pressure on rupee should go on," a dealer at a private sector bank said. "I am expecting RBI to come in but not sure how aggressively." Dealers expect the Reserve Bank of India to sell dollars around 90.30 a dollar to support the rupee, as was the case on Monday.
A fall in domestic equities weighed on the Indian currency, some dealers said. At 0928 IST, the Sensex and Nifty 50 were down 0.5% and 0.3%, respectively.
For the rest of the day, the rupee is seen moving between 90.00 and 90.40 against the greenback. Dealers peg immediate technical resistance for the rupee at 90.00 a dollar. (Pratiksha)
India Rupee: Expected range for rupee - Jan 6
NEW DELHI – 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 | 90.40 | 90.10 |
| Private-sector bank | 90.50 | 90.00 |
| Private-sector bank | 90.40 | 90.10 |
| Private-sector bank | 90.30 | 90.10 |
| Foreign bank | 90.45 | 90.05 |
| Brokerage firm | 90.40 | 89.90 |
| Brokerage firm | 90.35 | 89.85 |
(Pratiksha)
India Rupee - Asia FX: Most units up as dlr index eases; South Korean won dn
NEW DELHI – Most Asian currencies gained against the dollar as the dollar index came off a near-four-week peak after data released Monday showed US manufacturing activity declined to a 14-month low in December. A rise in domestic equities, tracking gains on Wall Street, also boosted the Asian units.
The US manufacturing Purchasing Managers' Index dropped to 47.9 in December, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing. It was the 10th straight month that the PMI remained below the 50 threshold. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.
At 0820 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.30, down from 98.36 Monday and 98.43 Friday. The index had hit a high of 98.86 earlier on Monday, the highest since Dec. 10.
The Malaysian ringgit rose 0.4% against the US unit, the most amongst its peers, while the Thai baht was up 0.2%. Both the Chinese yuan and Taiwan dollar were up 0.1%.
Bucking the trend, the Phillipine peso was down 0.1% against the dollar despite data released Tuesday showing annual inflation was 1.8% in December, above the previous month's 1.5%. Economists in a Reuters poll had expected annual inflation to ease to 1.4% in December.
The South Korean won was also down 0.1% against the greenback. South Korea's Finance Minister Koo Yun-cheol on Monday vowed efforts to stabilise the currency market as the won's recent declines defied economic fundamentals. "We will closely monitor financial and foreign exchange markets and make efforts to resolve the structural demand-supply imbalance in the foreign exchange market," he said. (Pratiksha)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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