Rupee Trade

The rupee opened lower at 89.9525 per US dollar as against its last closing price of 89.87. The currency moved in a narrow range before settling 0.1% down at 89.97.

According to a report by BofA Securities, this weakness in the Indian currency is likely to persist in the near term given the latent uncertainty of the US India trade deal, and pressure on capital flows, can and will impact various macroeconomic variables in India, if it persists.

The rupee started at 90.07 against the dollar in the interbank market before slipping to 90.11, down 16 paise from its previous close.

The Rupee was trading at 89.16 against the U.S. dollar on Monday, November 24, appreciating 0.35% for the day. The currency touched an all-time low to 89.48, nearing the psychological mark of 90-per-dollar on Friday.

At 10:30 a.m. IST, the rupee stood at 88.6250 against the U.S. dollar, marginally stronger than Wednesday's close of 88.69.

The rupee climbed to a peak of 83.83, up 0.7% from its close at 84.4875 in the previous session. The currency is now up nearly 2% on the week.

The rupee fluctuations against the US dollar are expected to impact sector earnings by upto 250 bps in fiscal 2026. While some sectors may benefit, others reliant on imports could face increased costs, potentially affecting their earnings short-term, with a neutral overall credit impact anticipated.

The Indian rupee rose 0.25% to 86.1475 against the dollar, continuing a weekly increase of 0.72%. The rise is attributed to dollar inflows and rebalancing of FTSE's All-World Index, with expectations of $1.5 billion inflows amid weak Asian currencies.

A wave of selling in the Indian stock market is causing substantial wealth erosion for investors. Economic concerns and geopolitical factors, including Trump's tariff strategy, are driving this trend. Many stocks are down significantly from their peaks, reflecting the ongoing market distress.

The Indian rupee surged nearly 1% against the US dollar, aided by the RBI's intervention, marking its strongest rally in over two years. The currency stabilized at 86.6362 per dollar, moving above the 87 mark for the first time since January 31.