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Rupee began beardown connected Tuesday, strengthening by 18 paise to 90.12 against the US dollar, snapping its four-day losing streak.The currency’s rebound comes a time aft it ended little connected Monday, closing astatine 90.30 against the greenback amid ongoing geopolitical uncertainty and anemic home equities.
According to traders, aft the American subject cognition successful Venezuela, US dollar had gained traction globally arsenic investors towards safe-haven assets.Since December 30 past year, erstwhile it had ended astatine 89.75 against the dollar, rupee has fallen 55 paise. In calendar twelvemonth 2025, the currency plunged astir 5%, marking its weakest momentum since 2022.“The Indian rupee has endured a persistent downward spiral, losing crushed successful 9 retired of the past 10 trading sessions.
This weakness is chiefly fueled by ambiguity surrounding bilateral commercialized agreements betwixt Washington and New Delhi, alongside a sluggish home banal marketplace triggered by an exodus of overseas capital,” Dilip Parmar, Research Analyst, HDFC Securities, told PTI.He added that a surge successful geopolitical uncertainty had further boosted the dollar’s appeal. “This formation to information followed the detention of Venezuelan person Nicolas Maduro by American subject unit implicit the weekend,” Parmar said.
According to him, the USD-INR spot brace faces absorption adjacent 90.45, portion enactment is expected astir the 89.90 level successful the adjacent term.In planetary markets, the dollar index, which measures the greenback’s spot against a handbasket of six currencies, was trading 0.27% higher astatine 98.68. Brent crude, the planetary lipid benchmark, was up 0.91% astatine $61.30 per tube successful futures trade.SBI has predicted that the currency volition beryllium declining by astir 2% successful the adjacent fiscal year, with the speech complaint hovering adjacent 92 against US dollar.Meanwhile, the Reserve Bank of India’s latest information released connected Friday showed that India’s overseas speech reserves roseate by $3.293 cardinal to $696.61 cardinal successful the week ended December 26. In the erstwhile reporting week, the reserves had accrued by $4.368 cardinal to $693.318 billion.
