India, Dec 06 : The Indian rupee opened 7 paise higher at 90.21 against the US dollar on January 6, following a dip in the dollar index amid softer US manufacturing data. The rupee had closed at 90.28 in the previous session.
The dollar index, which tracks the greenback against a basket of six major currencies, eased to 98.231 from 98.270, reflecting weakening US industrial activity. December’s ISM Manufacturing PMI came in at 47.9, below the expected 48.3, marking the sharpest contraction in the sector since 2024.
Market experts said the rupee’s early recovery was aided by subdued US dollar strength and contained geopolitical tensions, including the Venezuela episode. “The dollar index eased back as markets shifted focus to weaker US data, helping the rupee gain early momentum,” said Amit Pabari, Managing Director at CR Forex Advisors.
However, persistent importer hedging and low foreign portfolio inflows have kept the rupee under pressure this year, with a 0.33 percent depreciation so far. Additional pressure stems from US President Donald Trump’s threats of higher tariffs on Indian goods if New Delhi does not comply with demands on Russian oil purchases.
“There is a good chance for the rupee to test 91 levels, given the stalled trade deal and ongoing FPI selling in stocks. Exporters may continue selling on a cash/spot basis while importers can buy dips to hedge,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.