After falling for four straight days, the Indian rupee turned around on Tuesday, gaining 12 paise to settle at around 90.18 against the US dollar.
Rupee Gains Back Some Ground
In the inter‑bank market the rupee opened at 90.22, moved between 90.08 and 90.25, and closed at a provisional 90.18 per dollar. This ended a four‑day losing streak.
Why the Dollar Lost Strength
The US dollar index slipped 0.06% to 98.21 after the US ISM Manufacturing PMI came in below expectations, indicating softer economic activity. A weaker dollar helped lift the rupee.
Impact on Indian Stock Markets
India’s main equity indices also fell: the Sensex dropped 376.28 points to 85,063.34 and the Nifty slipped 71.60 points to 26,178.70. Foreign institutional investors sold about ₹36.25 crore worth of shares on Monday.
Domestic Economic Snapshot
India’s services sector showed slower growth in December. The HSBC India Services PMI fell to 58.0 from 59.8, the slowest expansion since January 2025, and companies paused hiring new staff.
What Could Happen Next?
- Geopolitical tensions, especially between the US and Venezuela, may keep global risk aversion high and weigh on the rupee.
- Higher crude‑oil prices and continued foreign outflows could add further pressure.
- A weaker dollar or possible RBI intervention might support the rupee at lower levels.
Remember, this is just my view, not a prediction. Do your own research before making any decisions.