More Stories

Informist, Wednesday, Jan. 7, 2026

 

By Pratiksha

 

NEW DELHI – The rupee settled above the 90-per-dollar mark Wednesday owing to the Reserve Bank of India's heavy-handed intervention through dollar sales in early trade, dealers said. Foreign fund inflows into Indian corporates also aided the Indian unit, they said. 

 

"We were expecting big intervention (by the RBI) as long (dollar) positions were building up again. That is exactly what happened," a dealer at a foreign bank said. "The market just settled down after that, with some buying (of dollars) coming in." 

 

The Indian unit settled at 89.8800 a dollar, 0.3% higher from its previous close of 90.1650. The Indian currency was the best performer amongst its Asian peers, which fell tracking a rise in the dollar index. Asian currencies fell 0.1-0.3% against the dollar, with the Malaysian ringgit being the worst hit among them.

 

The rupee started the day broadly steady against the dollar but fell to a low of 90.2325 a dollar shortly afterwards, as banks rushed to buy dollars on behalf of oil marketing companies and other importers, dealers said. Importers have been actively stocking up on the greenback, fearing further depreciation in the Indian unit amidst the looming uncertainty over the India-US trade deal. 

 

However, state-owned banks stepped in to sell dollars aggressively, likely on behalf of the central bank, following which the local unit rose sharply above the 90-per-dollar mark, dealers said. Dealers estimated that the central bank likely sold around $2 billion in the spot market on Wednesday. The RBI's heavy-handed intervention was a repeat of the strategy opted several times last month. On Dec. 19, the rupee posted its biggest single-day gain against the dollar in over three years owing to the central bank's aggressive intervention. 

 

"It has almost become routine for the RBI to intervene in big amounts," a dealer at a state-owned bank said. "The only message seems to be that they don't want rupee to move in a single direction. They have made the market unpredictable."

 

The domestic unit recieved a further boost as foreign banks, including a UK-based bank, stepped in to sell dollars, likely for foreign fund inflows into Indian corporates, dealers said. The rupee touched a high of 89.8000 a dollar during the day. 

 

Noting 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 importers, noting the relatively lower dollar-rupee levels, which limited gains for the Indian unit, dealers said. 

 

Further, the dollar index edged higher ahead of the release of key US economic data this week, including private payrolls and job openings data later in the day, which also weighed on the rupee, they said. At 1530 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.63, up from 98.60 Tuesday and 98.36 Monday. 

 

A fall in domestic equities also weighed on the Indian unit, according to dealers. On Wednesday, both the Sensex and Nifty 50 ended 0.1% lower each.

 

	AT 1530 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	89.8800	90.1750	89.8000	90.2325	90.1650
1-year dlr/rupee fwd (paise)	238.65	232.32	239.56	232.32	235.77

 

FORWARDS

The one-year dollar-rupee forward premium ended higher as banks bought dollars for forward delivery on behalf of importers, noting appreciation in the rupee, 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.

 

Market participants now await the release of labour market data from the US this week. The US private payrolls and job openings data is due later in the day, while the crucial non-farm payrolls report is due Friday. The data on Friday may show that employers in the US added 60,000 workers in December. The unemployment rate is expected to decline to 4.5% in December, 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 2.64%, up from 2.61% Tuesday. On an absolute basis, the premium was 238.65 paise, against Tuesday's close of 235.77 paise.

 

OUTLOOK

On Thursday, the rupee may take cues from movement in the dollar index after the release of US private payrolls and job openings data, due later in the day, dealers said. Market participants will watch out for the RBI's intervention in the spot market, especially after Wednesday's heavy intervention.

 

"I think the rupee levels will stabilise for some days around 89.80, and then buying (of dollars) will begin again," a dealer at a private-sector bank said. "Unless some inflows hit the market, the rupee should continue to go towards 90.00 again." 

 

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. 

 

According to the first advance estimate released by the statistics ministry post-market hours, India's GDP growth is pegged to rise to 7.4% in the current financial year ending March. The Indian economy had grown 6.5% in FY25. This is expected to support the local unit, dealers 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 89.70-90.20 against the dollar. Immediate technical support for the rupee is pegged at 90.30 and resistance at 89.80.

---

India Rupee: Premiums steady; mkt participants await US econ data for cues

 

	AT 1514 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	89.9275	90.1750	89.8000	90.2325	90.1650
1-year dlr/rupee fwd (paise)	238.65	232.32	239.56	232.32	235.90

 

MUMBAI – The one-year dollar-rupee forward premium was just a wee bit higher Wednesday as market participants awaited the release of economic data from the US for further cues on movement in US Treasury yields, dealers said. 

 

US Treasury yields rose slightly Tuesday, which weighed on the premiums as traders anticipated that important jobs data this week would provide fresh insight into the robustness of the US labour market and as firms ramped up their issuance of corporate debt.

 

However, some banks bought dollars for forward delivery on behalf of importers, noting appreciation in the spot rupee, which supported the forward premiums, dealers said. The rupee rose to a high of 89.8000 earlier in the day. 

 

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 1509 IST, the one-year exact period dollar-rupee forward premium was 2.63%, broadly steady from 2.62% Tuesday. On an absolute basis, the premium was 238.66 paise, against Tuesday's close of 235.77 paise.  (Kabir Sharma)

---

India Rupee: Stays above 90/$ on bks' dlr sales for RBI; oil cos' buys weigh

 

	AT 1306 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	89.9600	90.1750	89.8000	90.2325	90.1650
1-year dlr/rupee fwd (paise)	238.56	232.32	239.56	232.32	235.90

 

MUMBAI – The rupee remained above the 90-per-dollar level as state-owned banks sold dollars on behalf of the Reserve Bank of India, dealers said. Dealers said the RBI sold dollars to prevent sharp depreciation in the Indian unit in the face of aggressive dollar purchases by oil marketing companies. 

 

"They have already sold nearly 2 yards ($2 billion) today," a dealer at a private-sector bank said. "Oil is the main issue now, they don't want any panic buying to take the pair to 90.50 or 91.00 suddenly."   

 

After opening steady at 90.1700 against the dollar, the rupee surged on the back of dollar sales from the RBI and a UK-based foreign bank for inflows into Indian companies. Dealers estimated that the central bank sold around $2 billion on Wednesday. 

 

Dealers said oil marketing companies continued to stock up on the greenback fearing a rise in prices due to uncertainty around the future of supply from Venezuela. However, oil marketing companies felt that the current levels are attractive given the fall in prices earlier in the day. 

 

Crude oil prices slumped in early trade Wednesday as US President Donald Trump said Tuesday evening that the provisional leaders in Venezuela would hand over between 30 million and 50 million barrels of oil to the US.

 

A fall in local indices also weighed on the Indian unit, dealers said. At 1304 IST, both the Sensex and the Nifty 50 traded 0.3% lower each.

 

For the rest of the day, the rupee is seen moving between 89.80 and 90.30 against the greenback. Dealers peg immediate technical resistance for the rupee at 89.8000 a dollar and support at 90.30.  (Kabir Sharma)

---

India Rupee: Technical levels for rupee - Jan 7

 

MUMBAI – At 1125 IST, the rupee was at 89.9950 per dollar. At 0900 IST, the rupee was at 90.1700 a dollar, against the previous close of 90.1650 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
Brokerage firm	90.40	90.35	89.75	89.70
Brokerage firm	90.50	90.30	89.80	89.60

 

(Kabir Sharma)

---

India Rupee: Surges on foreign banks' dlr sales for inflows into local cos

 

	AT 1003 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	89.9325	90.1750	89.8000	90.2325	90.1650
1-year dlr/rupee fwd (paise)	236.10	232.32	236.10	232.32	235.90

 

MUMBAI – The rupee surged against the dollar in early trade as foreign banks sold the greenback for inflows into Indian corporates, dealers said. Some dealers speculated that the Reserve Bank of India also sold dollars to prevent sharp depreciation in the Indian unit in the face of aggressive dollar purchases by oil marketing companies. 

 

"There was selling by a foreign bank early on for corporate inflows," a dealer at a brokerage firm said. "They (RBI) are selling so that oilers don't take it to 90.50," he said. 

 

Dealers said a UK-based foreign bank sold for custodian inflows, which supported the Indian unit. 

 

Some banks bought the greenback for oil marketing companies on account of a sharp fall in prices, which weighed on the rupee, dealers said. Crude oil prices slumped in early trade Wednesday as US President Donald Trump said on Tuesday evening that the provisional leaders in Venezuela would hand over between 30 million and 50 million barrels of oil to the US.

 

In a social media post, Trump said the oil would be sold at its market price, "and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!"

 

A fall in local indices also weighed on the Indian unit, dealers said. At 1003 IST, the Sensex and the Nifty 50 traded 0.2% lower each.

 

For the rest of the day, the rupee is seen moving between 89.80 and 90.30 against the greenback. Dealers peg immediate technical resistance for the rupee at 89.8000 a dollar and support at 90.30.  (Kabir Sharma)

---

India Rupee - Asia FX:Most dn as dlr firm; Philippines rate cut on the cards

 

MUMBAI – Most Asian currencies were down against the dollar as the greenback remained firm across the board owing to a fall in other major currencies. At 0823 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 98.54, against 98.59 Tuesday and 98.36 Monday.

 

The Indonesian rupiah was down 0.2% against the dollar. Inflation firmed in December but stayed within Bank Indonesia's 1.5–3.5% target, limiting the need for urgent policy tightening. Headline CPI rose to a 20-month high of 2.92% in December, while core inflation held at a seven-month peak.

 

The Philippines peso fell 0.2% against the dollar as Bangko Sentral ng Pilipinas said further monetary policy easing might come as early as the Monetary Board's first meeting for 2026 amid subdued inflation and dismal economic growth last year. BSP Governor Eli M. Remolona Jr. told journalists in Mandaluyong City, (It's) on the table. Unlikely pero puwede naman (but we could deliver it)."

 

The Taiwan dollar was steady against the dollar. Taiwan's foreign exchange reserves rose by $2.76 billion from a month earlier to $602.55 billion at the end of December, second only to $602.94 billion recorded at the end of September, the central bank said on Tuesday. 

 

The Thai baht, the Malaysian ringgit and the offshore Chinese yuan were down 0.1% against the dollar each.  (Kabir Sharma)

---

India Rupee: Expected range for rupee - Jan 7

 

MUMBAI – Following are the expected support and resistance levels for the rupee on Wednesday, as forecast by leading banks and brokerages in an Informist poll:

 

PARTICIPANT	SUPPORT	RESISTANCE
State-owned bank	90.50	90.00
Private-sector bank	90.35	90.00
Private-sector bank	90.45	90.05
Brokerage firm	90.40	89.90
Brokerage firm	90.35	89.85

 

 

 

 

 

 

 

 

 

(Kabir Sharma)

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.