News Indian Rupee Falls for Fourth Consecutive Session to 90.91 Per Dollar Amid Corporate DemandIndian Rupee Falls for Fourth Consecutive Session to 90.91 Per Dollar Amid Corporate Demand
The Indian Rupee declined for the fourth consecutive session to close at 90.91 per dollar, marking its lowest level since December 16. Despite early appreciation to 90.64 following U.S. dollar weakness, persistent corporate dollar buying and supply shortfall pressured the currency lower. The rupee has breached the key 90.30-90.50 support zone, with the all-time high of 91.07 as the next critical level, while foreign equity outflows exceeding $2.50 billion in January continue to weigh on sentiment.
*this image is generated using AI for illustrative purposes only.
The Indian Rupee extended its losing streak for the fourth consecutive session on Monday, closing at 90.91 per dollar amid persistent corporate dollar demand and supply constraints. The currency's decline came despite early gains that saw it appreciate to 90.64 in morning trade.
Currency Performance and Market Dynamics
The rupee's trading session highlighted the current challenges facing the local currency. After opening stronger at 90.64 following U.S. dollar weakness, the currency reversed course and approached the psychologically important 91.00 level before settling lower.
| Parameter: | Details |
|---|---|
| Monday's Close: | 90.91 per dollar |
| Previous Close: | 90.86 (Friday) |
| Early Session High: | 90.64 |
| Lowest Since: | December 16 |
| Consecutive Decline: | Fourth session |
Traders reported that the Reserve Bank of India intervened mildly during the session to prevent further deterioration in the currency's value as it neared the 91.00 mark.
Technical Levels and Market Outlook
The rupee has now breached the critical support zone of 90.30-90.50, raising concerns about further weakness. According to Amit Pabari, Managing Director at CR Forex, the all-time high of 91.07 represents the next major level to monitor for the currency.
"Risk-off sentiment is rarely friendly to emerging markets. As investors turn cautious, capital tends to move out of riskier assets. The rupee, already under pressure, may feel added strain and simply put, when the world feels uneasy, emerging market currencies often bear the cost," Pabari explained.
Factors Influencing Currency Movement
Several factors contributed to the rupee's performance during the session:
- Corporate Dollar Demand: Persistent buying pressure from corporates seeking dollars
- Supply Shortfall: Limited dollar supply in the domestic market
- Global Risk Sentiment: Cautious investor approach affecting emerging market currencies
- Equity Outflows: Foreign investors have withdrawn over $2.50 billion from Indian stocks in January
The currency initially found support from U.S. dollar weakness against major peers and Asian currencies, as investors reduced dollar exposure amid mounting tensions over Greenland and threats of U.S. tariffs on European nations.
Market Balance and Recovery Challenges
The rupee's inability to sustain its opening gains underscores the current imbalance in the foreign exchange market. Any recovery attempts are being consistently offset by corporate dollar demand and the overall lack of supply, creating a challenging environment for the local currency.
The continued outflows from equity markets have further dampened sentiment, with foreign institutional investors maintaining their selling stance in Indian stocks throughout January. This combination of factors suggests that the rupee may continue to face headwinds in the near term, particularly if global risk sentiment remains subdued.
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