The rupee closed at 89.65 per dollar, down 0.4% from 89.27 last Friday. During the session, it traded in a narrow range of 89.45 to 89.72.
“The INR rose sharply against the USD last week due to aggressive FX intervention by the RBI along with inflows into FPI (Foreign Portfolio Investor) equities,” said an ICICI Bank research report. “However, higher oil prices partially offset gains in today’s trade, and will be a near-term driver for the pair.”
Heavy intervention by the Reserve Bank of India on Friday aimed at curbing speculation helped the rupee recover to 89.30 from the 90.10-90.20 levels. The currency gained 1.3% last week, marking its best monthly performance.
Since the start of 2025, the rupee has depreciated nearly 6%, hitting a record low of 90.70 on December 15. “The INR’s underperformance in 2025 was less about India’s domestic fundamentals and more about US politics and trade uncertainties, which increased the risk premium on senior assets of Indian Vapex Bank,” D.
“Our base case scenario sees USD/INR in the lower half of the ascending price channel to 89.5-92.8 by end-2026.”
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