The Indian rupee continued its weakening streak for the third consecutive session, declining 10 paise to 90.44 against the US dollar in early Friday trading. The domestic currency faced headwinds from persistent foreign fund outflows and a firm greenback, though supportive factors prevented a steeper decline.

Currency Performance and Market Dynamics

At the interbank foreign exchange market, the rupee opened at 90.37 before slipping further to 90.44 against the dollar. This represented a 10 paise decline from the previous session's closing level, extending the currency's recent weakness.

The foreign exchange markets remained closed on Thursday due to a holiday for Mumbai municipal corporation elections, contributing to the trading gap.

Global Currency and Commodity Trends

The dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.02 per cent lower at 99.10. Despite this marginal decline, the American currency maintained its overall strength following December US inflation data that reduced market expectations for immediate interest rate cuts by the Federal Reserve.

Brent crude, the global oil benchmark, provided some relief by trading 0.34 per cent lower at USD 63.54 per barrel in futures trade. Lower crude oil prices typically benefit India as a major oil importer, helping to reduce import costs and supporting the rupee.

Trade Deficit Impact

India's trade deficit data released on Thursday showed a widening gap to USD 25.04 billion in December 2025, compared to USD 24.53 billion in November and USD 22 billion in December 2024. This deterioration in the trade balance added pressure on the rupee by indicating higher import costs relative to export earnings.

Equity Market Performance

Domestic equity markets provided positive sentiment, with the Sensex climbing 210.04 points to 83,592.75 and the Nifty rising 34.65 points to 25,700.25. However, foreign institutional investors continued their selling spree, offloading equities worth ₹4,781.24 crore on Wednesday according to exchange data.

Market Outlook

Forex traders noted that while the rupee faced multiple headwinds including foreign fund outflows and a strong dollar, the combination of lower crude oil prices and positive domestic equity market sentiment helped prevent a more significant decline. The currency's performance continues to be influenced by global monetary policy expectations and domestic economic indicators.

The Indian Rupee opened at 90.37 against the US Dollar in today's trading session, marking a slight decline of 0.01% from the previous close. This marginal movement reflects the currency's performance in early trading hours.

Currency Performance Overview

The rupee's opening level demonstrates relatively stable trading conditions against the greenback. The minimal percentage change of 0.01% indicates that the currency is consolidating around current levels without significant volatility.

Market Context

The rupee's current opening position reflects the ongoing dynamics in the foreign exchange market. The marginal decline suggests that the currency is trading within a narrow range, indicating measured market sentiment in early trading hours.

This opening level provides insight into the rupee's immediate performance against the dollar, serving as a reference point for traders and market participants monitoring currency movements throughout the trading session.