Mumbai, Jan 16: The Indian rupee continued its decline for the third consecutive session on Friday, slipping 10 paise to trade at 90.44 against the US dollar in early interbank deals. The domestic currency remained under pressure due to persistent foreign fund outflows and a firm US dollar.
The rupee had opened at 90.37 and further weakened in early trade. It had earlier fallen 11 paise to 90.34 on Wednesday, following a 6 paise loss the day before. The foreign exchange markets were closed on Thursday for the Mumbai municipal corporation elections.
Forex traders noted that lower crude oil prices and positive equity market sentiment provided some support, preventing a sharper decline. Meanwhile, the dollar index, which tracks the US currency against a basket of six major currencies, was slightly down at 99.10, a 0.02% dip.
Analysts highlighted that US inflation data for December has tempered expectations of an immediate Federal Reserve rate cut, strengthening the greenback. Additionally, India’s trade deficit widened to USD 25.04 billion in December 2025 from USD 24.53 billion in November, putting additional pressure on the rupee.
The weakening rupee could impact import costs and inflation, as well as market sentiment in the near term