Rupee vs Dollar: Currency closes lower at 89.98 on first day of 2026; what set the tone – The Times of India

The rupee fell by 10 paise to close at 89.98 against the US dollar on Thursday. This marked a weak start to the first trading session of 2026 as continued foreign fund outflows and subdued domestic stock market weighed on investor sentiment, PTI reported.Forex traders said the USD/INR pair moved within a narrow range during the session, with support from easing crude oil prices offset by a firmer US dollar index and continued outflows by foreign investors. The domestic currency has remained under pressure after the end of 2025 with a decline of almost 5%.At the interbank forex market, the rupee opened at 89.94 against the dollar, touched an intraday low of 89.99 and a high of 89.93 before settling at 89.98 (provisional), down 10 paise from the previous close, PTI said. On Wednesday, the rupee had depreciated by 13 paise to close at 89.88.In 2025, the rupee depreciated by around 5% due to continued foreign capital outflows and increased demand for dollars from importers, making the rupee one of the worst performing Asian currencies.Meanwhile, the dollar index, which tracks the greenback against a basket of six major currencies, traded 0.09% higher at 98.32. Brent crude, the global oil benchmark, rose 0.78% to $60.85 per barrel in futures trading.Market participants said the currency remained under pressure due to a risk-off sentiment, driven by capital withdrawals by foreign investors ahead of the holiday season and continued demand for dollars from importers.On the domestic equity front, benchmark indices ended the first trading session of the year on a flat note. The Sensex lost 32 points to close at 85,188.60, while the Nifty rose 16.95 points to 26,146.55.Foreign institutional investors sold shares worth Rs 3,597.38 crore on Wednesday, exchange data showed.On the macroeconomic front, gross GST collections rose 6.1% to over Rs 1.74 lakh crore in December 2025, compared to over Rs 1.64 lakh crore in December 2024, due to slower growth in domestic sales revenue following recent tax cuts, government data released on Thursday showed.