The Indian rupee on Tuesday closed flat at ₹89.65 against the US dollar, unchanged from Monday’s close. During the afternoon session, it inched slightly higher to ₹89.83. Analysts attributed the stability to central bank intervention, with state-run banks selling dollars aggressively to curb volatility.
The rupee had reached an intraday high of ₹89.25 last Friday following RBI measures, which also helped reduce speculative positions in the market. Overseas investors have shown renewed interest in Indian equities, purchasing $644 million of local shares in the past two months—the highest since mid-October—according to Bloomberg.
This inflow coincided with the rupee posting its biggest weekly gain in nearly six months, after experiencing nearly $1.8 billion of equity outflows over the previous three weeks. RBI interventions have contributed to a 2% appreciation, following a historic low of ₹91.08 recorded on December 16.
The currency traded in a tight range of ₹89.45–89.65 on Tuesday, supported by a softer dollar index and improved domestic risk sentiment. Analysts note that ongoing trade developments, including a potential trade deal with the US, could strengthen the rupee further toward ₹88 in the first half of FY26.
The USD/INR is expected to fluctuate in the ₹89.20–90.20 range, with any sustained break below ₹89.20 potentially opening the path toward ₹88.50, while a break above ₹90.10 may trigger higher levels. Market watchers will continue to monitor upcoming US economic data and central bank policy decisions for further direction.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult a qualified professional before making any investment or currency decisions.
