Rupee slips 10 paise to close at 89.97 against dollar amid fund outflows

The rupee on Thursday depreciated 10 paise to close at 89.97 (provisional) against the dollar, the first trading session of 2026, as sustained foreign fund outflows and a negative trend in domestic equities dented investor sentiments. 

Forex traders said the USD/INR pair traded in a tight range, as support from easing crude oil prices was offset by a positive tone in the US dollar index and foreign fund outflows. 

The Indian rupee declined on the first day of the year, after registering a 5 per cent slump in 2025, as significant fund outflows kept dollar demand elevated and the rupee under pressure. At the interbank foreign exchange, the local unit opened at 89.94 against the dollar, touched an intraday low of 89.99, and a high of 89.93. 

 

At the end of Thursday’s trading session, the rupee was quoted at 89.97 (provisional) against the dollar, down 10 paise from its previous close. On Wednesday, the rupee depreciated by 13 paise to close at 89.88 against the US dollar. 

In 2025, the rupee slumped 5 per cent amid persistent outflows of foreign capital and heightened dollar demand from importers, making it one of the worst-performing Asian currencies. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 98.32. 

Brent crude was trading 0.78 per cent higher at $60.85 per barrel in futures trade. Forex traders said the USD/INR pair is trading under pressure due to multiple factors, including a shift toward risk aversion, driven by persistent capital withdrawals from foreign investors ahead of the holiday break, alongside heightened greenback demand from importers.

 

Gold kicks off 2026 on a firm note 

Gold prices started the new year on a firm note on Thursday, rising by ₹640 to ₹1,38,340 per 10 grams in the national capital, according to the All India Sarafa Association.  

The yellow metal of 99.9 per cent purity had closed at ₹1,37,700 per 10 grams on Wednesday. 

However, silver prices extended losses for the second consecutive day, depreciating ₹1,600 to ₹2,37,400 per kilogram (inclusive of all taxes) from the previous close of ₹2,39,000 per kg. 

The rally in both gold and silver during 2025 was spectacular. The safe-haven delivered returns of 73.45 per cent. Meanwhile, silver outperformed gold with a surge of about 164 per cent.   

 

Crude oil rises to ₹5,217 bpd in futures trade 

Crude oil prices on Thursday went up marginally by ₹4 to ₹5,217 barrels per day (bpd) in the futures trade amid mixed global cues. On the Multi Commodity Exchange, crude oil for January delivery traded higher by ₹4, or 0.08 per cent, to ₹ 5,217 per barrel in 18,240 lots.