The rupee strengthened against the dollar tracking gains in Asian currencies, but upside was capped by strong dollar demand from large corporates, dealers said
The foreign lender had earlier forecast the currency at 90.50-91.00 levels
The rupee's gains come after India and the US reached a trade agreement following months of negotiations, although details of the pact are yet to be released
The rupee appeared on course to open near its all-time low of 91.9875 per dollar, but the RBI's intervention helped shore it up to 91.60, a gain of 0.4 per cent from its closing level on Friday
The central government raises its money from a mix of taxes, borrowings, and other receipts, while it is spent on states, interest payments and pensions
The rupee is down about 2.3 per cent so far this month and is headed for its worst monthly performance since September 2022
India's inflation rate will likely be higher in FY27 than in FY26
The rupee slid to an intraday low of 92 per dollar amid dollar demand and FPI outflows, with RBI intervention preventing a breach of the key psychological level
Economic Survey 2025-26 signals an adjustment phase ahead, with moderate growth, stable inflation, fiscal consolidation and policy shifts shaping India's macro outlook
Foreign investors have withdrawn roughly $4 billion from local equities in January, with bankers noting that external commercial borrowing and net foreign direct investment inflows also remain subdued
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,
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 rupee fell to a fresh record low as foreign equity outflows, weak global risk sentiment and yen carry trade unwinding weighed on the currency, with RBI intervention limiting further losses
RBI's net dollar sales moderated in November, even as its outstanding short dollar position in the forward market rose further, reflecting continued intervention to manage rupee volatility
The Indian currency fell 77 paise to a fresh low of 91.75 against the US dollar on Wednesday
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
The rupee closed at 90.1525 per dollar, little changed from 90.1625 in the previous session
Deliver average annual return of 12%