Rupee Rises 31 Paise to 89.87 on RBI Support as Oil Slides
Rupee Rises 31 Paise to 89.87 on RBI Support as Oil Slides
RBI intervention and softer crude prices lift the rupee, snapping a four-day decline and adding cautious optimism to Indian markets.
In Mumbai's forex market, the rupee climbed 31 paise to 89.87 (provisional) against the U.S. dollar on January 7, 2026, helped by possible RBI intervention and a slide in global crude prices. The currency opened at 90.20 and traded in a wide range of 89.75-90.23 before settling near the session high, marking a pause after a four-day losing streak. A key voice in the market noted that the 89.50-90.50 band could hold broadly for January, underscoring cautious expectations amid fluctuating flows.
Global cues provided a supporting backdrop as the dollar index edged up 0.07% to 98.65. Brent crude slipped about 1% to around $60.10 per barrel, easing some of the imported cost pressures for India and aiding the rupee’s uptick. The domestic equity scene mirrored the careful tone, with the Sensex sliding 102.20 points to 84,961.14 and the Nifty retreating 37.95 points to 26,140.75, reflecting ongoing jitters among investors.
Foreign institutional investors remained net sellers, offloading equities worth ₹107.63 crore on Tuesday, data showed. The RBI’s dollar sales around the 90.23 mark were cited as a factor limiting one-sided currency moves, suggesting policymakers prefer orderly flows over sharp swings in exchange rates. As market participants weigh the path for January, the 89.50-90.50 corridor continues to be watched closely, with traders bracing for further volatility amid global oil and dollar dynamics.
With the currency stabilising for now and crude easing, traders are positioning for the next set of cues from domestic data and global markets. The RBI’s stance and evolving oil prices will likely continue to influence the rupee’s direction in the near term, even as the exchange rate holds within the established range.
