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

The rupee slipped 10 paise to close at 89.98 against the US dollar on Thursday, marking a weak start to the first trading session of 2026, as sustained foreign fund outflows and a subdued domestic equity market weighed on investor sentiment, PTI reported.Forex traders said the USD/INR pair moved in a narrow range during the session, with support from easing crude oil prices being offset by a firmer US dollar index and continued outflows by foreign investors. The domestic currency has remained under pressure after ending 2025 with a nearly 5% decline.At the interbank foreign exchange, the rupee opened at 89.94 against the dollar, touched an intra-day low of 89.99 and a high of 89.93, before settling at 89.98 (provisional), down 10 paise from its previous close, according to PTI. On Wednesday, the rupee had depreciated 13 paise to end at 89.88.In 2025, the rupee slumped around 5% amid persistent foreign capital outflows and elevated dollar demand from importers, making it one of the worst-performing Asian currencies.Meanwhile, the dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.09% higher at 98.32. Brent crude, the global oil benchmark, rose 0.78% to $60.85 per barrel in futures trade.Market participants said the currency continued to face pressure due to a risk-off sentiment, driven by capital withdrawals by foreign investors ahead of the holiday period and sustained 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 slipped 32 points to close at 85,188.60, while the Nifty edged up 16.95 points to 26,146.55.Foreign institutional investors sold equities 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 with over Rs 1.64 lakh crore in December 2024, reflecting slower growth in revenues from domestic sales following recent tax cuts, government data released on Thursday showed