Indian Rupee

Trade deal with US could reverse the fortune of the Indian currency

The rupee hitting a historic low of 92 against the US dollar on January 23 is likely to make imports ranging from crude oil to electronic goods, overseas education and foreign travel costlier, stoke inflation concerns, but may offer some relief to exporters. The local currency has slumped by 202 paise, or over 2 per cent, so far this month. In 2025, it had plunged 5 per cent on unabated foreign fund outflows and dollar strength. The immediate impact of a depreciating rupee is on importers who will have to shell out more for the same quantity and price. India is 85 per cent dependent on foreign oil to meet its needs for fuels, such as petrol, diesel and jet fuel. However, it is a relief for the Indian exporters as they receive more rupees in exchange for dollars. Here is how a continuously weakening rupee is likely to impact spending: IMPORTS: The basket of Indian imports includes crude oil, coal, plastic material, chemicals, electronic goods, vegetable oil, fertiliser, machinery,

Market participants said exporters are staying cautious as trade talks remain stalled, reducing dollar inflows

RBI announced over $23 billion in liquidity measures via repos, FX swaps and bond buys to ease banking system stress amid rising yields and rupee pressure

About 35,000 to 40,000 tonnes of the commodity from Brazil and Argentina, booked for delivery in February and April-July period, have been scrapped, with total cancellations to exceed 50,000 tonnes

The rupee has been buffeted by equity outflows, with a record $19 billion last year and a further $2.9 billion this month amid valuation concerns, steep US tariffs and delays in a trade deal

The Indian currency fell 77 paise to a fresh low of 91.75 against the US dollar on Wednesday

The rupee fell up to 91.06 per dollar during the day, near the record low of 91.08 per dollar

Renewed threats of tariffs by US President Donald Trump -- specifically targeting European nations over a dispute regarding Greenland -- have triggered a global "risk-off" sentiment

Strong headline numbers, low inflation and a modest current account deficit have fostered the belief that little needs fixing

Heavy importer demand and maturing NDF positions pushed the rupee to its steepest one-day fall in two months, even as RBI dollar sales capped deeper losses

The rupee's depreciation is often seen as an opportunity - but this narrative overlooks its impact on borrowers of foreign-currency debt

The rupee settled at 90.03 per dollar, against the previous close of 89.89 per dollar

The local currency settled at 89.88 per dollar, against the previous close of 90.17 per dollar, after touching an intraday high of 89.83 per dollar

The rupee snapped a four-day losing streak in the last session, with bankers flagging possible support from the Reserve Bank of India

Amid deepening strategic ties and discussions around Free Trade Agreement (FTA) between India and Israel gaining momentum, the State Bank of India (SBI), the only Indian bank with a presence in Israel, is looking to facilitate bilateral trade in Indian rupees. "In view of India's significant trade flows from/to its partner countries and growing interest among the global trading community to trade in the Indian rupee, it has been envisaged by our banking regulators, i.e. Reserve Bank of India, to permit Indian banks to facilitate settlement of exports and imports of their respective corporate clientele in INR. Israel has been identified as one of the partner countries under this mechanism," CEO of SBI Israel, V Manivannan, told PTI. Israeli entities undertaking exports/imports through this mechanism shall receive and make payments in INR, which shall be credited into the Special Rupee Vostro Account (SRVA), against invoices for the supply/purchase of goods or services from the Israeli

The rupee breached the 90-per-dollar level amid sustained corporate dollar demand and FPI outflows, even as banking system liquidity turned surplus after two weeks

A weak rupee has wiped out nearly half of global investors' gains, leaving foreign funds waiting for a currency rebound to revive returns

Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range

RBI data shows its outstanding net short dollar position in the rupee forward market rose to $66.04 billion by end-November, up from $63.6 billion at end-October