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Informist, Tuesday, Jan. 27, 2026

 

By Pratiksha

 

NEW DELHI – The rupee ended sharply higher against the dollar Tuesday, owing to upbeat risk appetite among investors after India and the European Union on Monday agreed to a free trade agreement, dealers said. Weakness in the dollar index also supported the Indian unit, they said. 

 

"There was a positive bias for the rupee since morning as the dollar was hammered over the weekend," a dealer at a private-sector bank said. "The EU FTA news added another layer to it."

 

The rupee ended at 91.7200 a dollar Tuesday, 0.3% higher from its previous close of 91.9500. The Indian unit touched a high of 91.6475 during the day and moved in a range of 25 paise.

 

The Indian currency began the day sharply higher against the dollar, as the dollar index hit an over four-month low on Monday amid a jump in the yen, ahead of the US Federal Reserve's policy decision and a possible announcement by the US President Donald Trump-led administration of a new Fed chair. 

 

At 1530 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 97.04, down from 97.06 Monday and 97.46 Friday. The index fell to 96.81 on Monday, its lowest level since Sept. 17.

 

However, banks rushed to buy dollars on behalf of importers to make the most of the relatively lower dollar-rupee levels, which limited gains for the local unit, dealers said. The appreciation in the Indian unit came after it fell to a record low of 91.9650 on Friday. "Fundamentally, for rupee, the buy (dollars) on dips (in dollar-rupee) is not going anywhere," a dealer at a state-owned bank said. "We need a sustainable cue to support the rupee."

 

Dealers said the Reserve Bank of India likely sold dollars in the spot market, below 91.80 a dollar, which supported the Indian unit. The intervention, however, was not aggressive in nature, they said. 

 

However, in the second half of the trade, the Indian unit received a further boost after India and the European Union agreed to a free trade agreement, touted as the "mother of all deals". While New Delhi has offered to cut duties on 96.6% of the EU's export value, Brussels has committed to cutting duties on 99% of India's export value under the trade deal. The EU accounts for more than 15% of India's total exports.

 

The deal with the EU represents about 25% of global GDP, and about a third of global trade, Prime Minister Narendra Modi said earlier in the day, adding that it will strengthen trade, manufacturing, and India's supply chain. 

 

Further, some foreign banks' dollar sales for foreign fund inflows into companies supported the Indian currency, according to dealers. A rise in domestic equities also supported the local unit, dealers said. On Tuesday, the Sensex and Nifty 50 ended 0.4% and 0.5% higher, respectively.

 

 

 

	AT 1530 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	91.7200	91.7550	91.6475	91.8925	91.9500
1-year dlr/rupee fwd (paise)	237.77	227.60	237.96	227.60	236.66

 

FORWARDS

The one-year dollar-rupee forward premium erased all earlier losses and ended higher as banks bought dollars for forward delivery, on behalf of importers, noting the relatively lower levels, dealers said. Importers also bought forward dollars, noting appreciation in the spot rupee, they said. The one-year premium hit an over three-week low of 2.48?rlier in the day. 

 

Forward premiums fell in early trade as the RBI, post-market hours Friday, announced its decision to conduct a $10 billion three-year dollar-rupee buy-sell swap auction on Feb. 4, which will infuse rupee liquidity into the banking system, dealers said. The announcement came after the central bank likely sold dollars for forward delivery, with maturities spanning various tenures, on multiple days last week.  

 

The one-year exact period dollar-rupee forward premium was at 2.59% at 1530 IST, against the previous close of 2.57%. On an absolute basis, the premium was 237.77 paise, against 236.66 paise Friday.

 

OUTLOOK

On Wednesday, the rupee may take cues from movement in the dollar index and developments related to US tariffs, dealers said. Market participants also await the full details of the India-EU trade agreement. 

 

Further, given the uncertainty over the India-US trade deal, dealers expect importers to continue buying dollars, as they fear depreciation of the local currency. They also expect foreign portfolio outflows to exert pressure on the rupee. So far this month, foreign portfolio investors have net sold over $3.20 billion from domestic equities.

 

Most market participants expect the RBI to intervene by selling dollars to prevent the rupee from falling past the psychologically crucial level of 92.00. The rupee is likely to move in a range of 91.50-92.00 against the dollar. Key technical resistance for the domestic currency is pegged at 91.50. 

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India Rupee: Rises more on upbeat risk appetite post India-EU FTA, FX inflow

 

	AT 1350 IST	AT 0900 IST	HIGH	LOW	PREVIOUS(AT 1530 IST)
Spot rupee per $1	91.6900	91.7550	91.6475	91.8925	91.9500

 

NEW DELHI – The rupee rose further against the dollar as risk appetite among investors got a boost after India and the European Union on Monday agreed to a free trade agreement, touted as the "mother of all deals", dealers said. Some foreign banks' dollar sales for foreign fund inflows also supported the Indian currency, they added. 

 

"Risk appetite has improved broadly after the EU FTA news," a dealer at a private-sector bank said. "One has to see how long this appreciation sustains. I am a bit cautious on that." The deal with the EU represents about 25% of global GDP and about a third of global trade, Prime Minister Narendra Modi said earlier in the day, adding that it will strengthen trade, manufacturing, and supply chain for India.

 

Further, broader weakness in the dollar index also supported the local unit, they said. The dollar index hit an over four-month low Monday owing to a jump in the yen, ahead of the US Federal Reserve's policy decision and a possible announcement by US President Donald Trump-led administration of a new Fed chair. At 1350 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 97.04, lower than 97.06 Monday and 97.46 Friday. The index fell to a low of 96.81 on Monday, its lowest level since Sept. 17.

 

However, banks bought dollars on behalf of importers in order to make the most of the relatively lower dollar-rupee levels, which limited gains for the local unit, dealers said. The Indian unit fell to a record low of 91.9650 on Friday. Earlier in the day, the Reserve Bank of India likely sold dollars in the spot market, below 91.80 a dollar, which supported the Indian unit, dealers said.

 

For the rest of the day, the rupee is seen moving between 91.50 and 91.80 against the greenback. Dealers peg the immediate technical resistance for the rupee at 91.60 a dollar. (Pratiksha)

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India Rupee: Premium off lows as importers buy fwd dlrs; RBI swap news weigh

 

	AT 1245 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	91.8150	91.7550	91.7300	91.8925	91.9500
1-year dlr/rupee fwd (paise)	234.27	227.60	235.24	227.60	236.66

 

NEW DELHI – The one-year dollar-rupee forward premium came off the over three-week low hit earlier in the day as banks bought dollars for forward delivery, on behalf of importers, noting the relatively lower levels, dealers said. The one-year premium hit a low of 2.48?rlier in the day. 

 

Importers also bought forward dollars, noting appreciation in the spot rupee, they said. On Tuesday, the rupee rose sharply against the dollar as the dollar index hit an over four-month low owing to a jump in the yen, ahead of US Federal Reserve's policy decision and a possible announcement by US President Donald Trump administration of a new Fed chair, dealers said. The appreciation came after the Indian unit fell to a record low of 91.9650 on Friday. 

 

Forward premiums fell in early trade as the Reserve Bank of India post market hours Friday announced its decision to conduct a $10 billion three-year dollar-rupee buy-sell swap auction on Feb. 4, which will infuse rupee liquidity into the banking system, dealers said. The announcement came after the central bank likely sold dollars for forward delivery, for maturity in various tenures, on multiple days last week.  

 

"We were expecting such an announcement (swap auction). RBI will just push its forward book to further maturity through this, I think," a dealer at a private-sector bank said. "$10 billion (swap) is no big deal for the market anymore." The central bank's net outstanding short forward positions was at a seven-month high of $66.05 billion at the end of November.

 

The one-year exact period dollar-rupee forward premium fell to 2.48?rlier in the day and was at 2.55% at 1245 IST, against the previous close of 2.57%. On an absolute basis, the premium was 234.27 paise, against 236.66 paise Friday. (Pratiksha)

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India Rupee: Technical levels for rupee - Jan 27

 

NEW DELHI – At 1120 IST, the rupee was at 91.7950 per dollar. At 0900 IST, the rupee was at 91.7550 a dollar, against the previous close of 91.9500 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	92.50	92.00	91.50	91.20
Foreign bank	-	92.00	91.20	-
Brokerage firm	92.20	92.00	91.20	90.60
Brokerage firm	92.20	92.00	91.00	90.80

 

(Pratiksha)

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India Rupee: Sharply up as dlr index hit 4-mo low, RBI dlr sales speculated

 

	AT 0950 IST	AT 0900 IST	HIGH	LOW	PREVIOUS(AT 1530 IST)
Spot rupee per $1	91.7650	91.7550	91.7325	91.8925	91.9500

 

NEW DELHI – The rupee rose sharply against the dollar as the dollar index hit an over four-month low owing to a jump in the yen, ahead of US Federal Reserve's policy decision and a possible announcement by US President Donald Trump administration of a new Fed chair, dealers said. 

 

At 0950 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 97.04, lower than 97.06 Monday and 97.46 Friday. The index fell to a low of 96.81 on Monday, its lowest level since Sept. 17.

 

"The rupee seems to be getting some relief from the dollar pullback, but I don't think it will sustain," a dealer at a state-owned bank said. "Unless RBI comes in at a level, buying (of dollars) should keep rupee near 92.00."

 

However, some banks rushed to buy dollars on behalf of importers, noting the relatively lower dollar-rupee levels, which limited gains for the Indian unit, dealers said. The rupee rose to a high of 91.7325 a dollar. 

 

Further, some dealers speculated the Reserve Bank of India might have sold dollars around the day's low of 91.8925 a dollar, which supported the local unit. "The 92.00 level remains the key near-term pivot. A sustained break above this zone could open the door toward 92.20–92.50," Amit Pabari, managing director at CR Forex, said in a note. "However, consistent RBI intervention may help stabilise the currency and gradually pull USD/INR (dollar-rupee) back toward the 90.80–91.00 range in the near term." 

 

A rise in domestic equities also supported the Indian unit, dealers said. At 0950 IST, the Sensex and Nifty 50 were up 0.4?ch. For the rest of the day, the rupee is seen moving between 91.50 and 92.00 against the greenback. Dealers peg immediate technical resistance for the rupee at 91.70 a dollar. (Pratiksha)

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India Rupee - Asia FX: Most down on US tariff worries; South Korea won slips

 

NEW DELHI – Most Asian currencies fell against the dollar as risk appetite among investors took a beating after US President Donald Trump's latest tariff moves on South Korea. However, losses for the Asian units were limited owing to a decline in the dollar index to an over four-month low. 

 

Accusing South Korea's legislature of "not living up" to its trade deal with Washington, Trump said late on Monday he was increasing tariffs on imports from Asia's fourth-biggest economy into the US such as autos, lumber and pharma to 25%. South Korea's finance ministry said on Tuesday it would actively consult with parliament on the US investment bill. Finance Minister Koo Yun Cheol was already planning to ask parliament for cooperation on the matter on Tuesday afternoon, the ministry said. Trump and South Korean President Lee Jae Myung struck a deal in principle last July for Seoul to initiate investments in the US worth $350 billion in return for a US promise to cut tariffs on its exports. The South Korean won was down 0.4% against the dollar, the most among its Asian peers. 

 

The Phillipines peso and Indonesian rupiah were down 0.2% against the greenback and the Thai baht was down 0.1%. Indonesia's parliament is set to approve President Prabowo Subianto's nephew Thomas Djiwandono as the new central bank deputy governor on Tuesday after he beat two career central bankers, fuelling concerns about Bank Indonesia's independence.

 

Bucking the trend, the Taiwan dollar and Malaysian ringgit were up 0.1% and 0,2% against the dollar, respectively. The Chinese yuan was flat against the dollar despite the country logging its first annual rise in industrial profit in four years in 2025, data showed on Tuesday. Profit at industrial firms increased 5.3% in December on year, reversing a 13.1% on-year fall in November.

 

The dollar index fell as the yen jumped sharply owing to speculation about joint US-Japan currency intervention after comments by Japan's prime minister and a leading currency diplomat. Investors also scaled back their dollar positions ahead of a US Federal Reserve meeting and a possible announcement by US President Donald Trump administration of a new Fed chair. At 0930 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was at 97.00, lower than 97.06 Monday and 97.46 Friday. (Pratiksha)

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India Rupee: Expected range for rupee - Jan 27

 

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	92.00	91.40
Private-sector bank	92.00	91.65
Private-sector bank	92.00	91.50
Foreign bank	92.00	91.20
Brokerage firm	92.00	91.40

 

 

 

 

 

 

 

 

(Pratiksha)

 

End

 

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

 

Edited by Saji George Titus

 

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