Rupee in red: Currency falls 11 paise to 90.77 against US dollar

Rupee opened weaker on Tuesday, falling 11 paise to 90.77 against the US dollar in early trade. The currency continued in red as traders opted a cautious stance after the announcement of the interim trade framework between New Delhi and Washington. At the interbank forex market, the currency at was at 90.63 levels against the greenback. As trade progressed, the unit gave up ground and slid to 90.77, reflecting an 11-paise drop compared with the previous finish.

The decline comes after a volatile Monday, when rupee moved in and out of positive territory before closing almost flat, ending 1 paisa lower at 90.66.




Dealers said that pact between the two countries initially appeared supportive because it prevented any immediate disturbance, mapped out the next stage of talks and offered exporters comfort that there would be no sudden shocks. A closer reading, however, prompted participants to reassess that optimism.

"The agreement places India under ongoing US oversight, particularly around energy imports from Russia — a sensitive issue that leaves room for penalties to be reimposed at any time," CR Forex Advisors MD Amit Pabari said.

Pabari indicated that near-term price action would hinge on whether key support levels remain intact. He identified the 90.00–90.20 region as an important cushion and said that if it holds, the pair could slowly move towards 91.00–91.20 over the next few sessions.

He also underlined the role of the central bank. "On rupee dips, the RBI is expected to step in with dollar purchases, absorbing inflows rather than allowing sharp appreciation," he said.

Foreign portfolio flows have turned somewhat favourable, with about $2 billion entering Indian markets so far this month, lending some stability to overall sentiment.

Yet reservations persist, Pabari added. "While this has helped stabilise sentiment, the market remains unconvinced about the durability of these flows. With global policy signals shifting almost daily, the currency market continues to price in caution rather than celebration," he said.

Data from the exchanges showed that foreign institutional investors were net buyers of shares worth Rs 2,254.64 crore on Monday.

In the wider market, the dollar index, which tracks the greenback against six major currencies, edged down 0.02% to 97.79. Brent crude futures were also softer, slipping 0.28% to $68.85 a barrel.

Indian equities, meanwhile, began the day in the green. The Sensex climbed 149 points to 84,214.75, and the Nifty rose 44.45 points to 25,911.75 in early trade.