The rupee extended its losing streak on Monday, weakening by 5 paise to trade at 90.23 against the US dollar in early sessions, pressured by firm crude oil prices and continued selling by foreign institutional investors.
Traders said cautious sentiment prevailed as overseas investors remained wary amid geopolitical uncertainties and concerns over possible US tariff measures affecting Indian exports. Market participants are also awaiting key macroeconomic data scheduled for release later this week for cues on the currency’s near-term direction.
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The domestic unit opened at 90.23 in the interbank foreign exchange market, slipping further from its previous close. On Friday, the rupee had already declined by 28 paise to settle at 90.18 against the greenback.
Global cues, equity weakness weigh on sentiment
The dollar index, which measures the US currency against a basket of six major peers, slipped 0.14% to 98.75 in early trade. Meanwhile, global crude prices edged higher, with Brent crude futures rising 0.13% to $63.44 per barrel, adding pressure on the import-dependent Indian currency.
Domestic equity markets mirrored the cautious mood. The benchmark Sensex fell 356.49 points, or 0.43%, to 83,219.75, while the Nifty declined 94.90 points, or 0.37%, to 25,588.40.
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Analysts pointed to a combination of international developments weighing on market confidence, including tensions involving Venezuela and Iran, as well as fresh geopolitical signals from the United States under President Donald Trump.
Foreign institutional investors remained net sellers, offloading shares worth ₹3,769.31 crore on Friday, according to exchange data.
Further pressure came from the Reserve Bank of India’s latest weekly figures, which showed foreign exchange reserves falling by $9.809 billion to $686.801 billion for the week ended January 2. In the preceding week, reserves had increased by $3.293 billion to $696.61 billion.
