Rupee Slips to 90.23 Against U.S. Dollar; Markets Feel Pressure Amid Crude Rise and Fund Outflows

Mumbai, India | 12 January 2026 The Indian rupee weakened by 5 paise to 90.23 against the U.S. dollar in early trade on Monday as rising crude oil prices and sustained foreign fund outflows weighed on the currency. The depreciation came as traders reacted to broader market uncertainties, including geopolitical tensions and concerns over potential U.S. tariffs on Indian exports. At the interbank foreign exchange, the rupee opened at 90.23 and remained weaker compared with its previous close, extending pressure on the currency after a 28‑paise fall in the prior session. Analysts pointed out that volatile global cues and capital moving out of Indian equities contributed to the slide. Domestic markets mirrored the weak sentiment, with the Sensex sliding 356.49 points to 83,219.75 and the Nifty dipping 94.90 points to 25,588.40. Meanwhile, the dollar index stayed firm, and Brent crude oil traded higher, adding to the headwinds facing the domestic unit. Data released by the Reserve Bank of India showed that the country’s forex reserves dropped by $9.809 billion to $686.801 billion in the week to 2 January, signaling further strain on foreign exchange buffers. Foreign institutional investors also continued to offload shares, widening selling pressure and contributing to the rupee’s weakness. Rupee Slips to 90.23 Against Dollar Amid Crude Rise and Foreign Fund Outflows The Indian rupee fell 5 paise to 90.23 against the U.S. dollar in early trade on Monday, pressured by rising crude prices and sustained foreign fund outflows. Traders cited geopolitical tensions and concerns over potential U.S. tariffs on Indian exports as key factors driving market volatility. Domestic equity markets mirrored the weak sentiment, with the Sensex dropping 356.49 points to 83,219.75 and the Nifty falling 94.90 points to 25,588.40. Analysts noted that developments in Venezuela, Iran, and U.S. policy moves were influencing global investor sentiment, impacting the rupee. Foreign institutional investors continued to offload shares, selling equities worth ₹3,769.31 crore on Friday. Meanwhile, the dollar index remained firm, while Brent crude traded higher at $63.44 per barrel, adding pressure on India’s import-dependent currency. The latest RBI data showed India’s forex reserves dropped by $9.809 billion to $686.801 billion, intensifying concerns over external stability. Market watchers are now awaiting upcoming macroeconomic data to gauge the rupee’s direction in the coming week.