Rupee rebounds! Currency rises 18 paise after 4-day losses; reaches 90.12 against US dollar

Rupee began strong on Tuesday, strengthening by 18 paise to 90.12 against the US dollar, snapping its four-day losing streak.The currency’s rebound comes a day after it ended lower on Monday, closing at 90.30 against the greenback amid ongoing geopolitical uncertainty and weak domestic equities. According to traders, after the American military operation in Venezuela, US dollar had gained traction globally as investors towards safe-haven assets.Since December 30 last year, when it had ended at 89.75 against the dollar, rupee has fallen 55 paise. In calendar year 2025, the currency plunged almost 5%, marking its weakest momentum since 2022.“The Indian rupee has endured a persistent downward spiral, losing ground in nine out of the past ten trading sessions. This weakness is primarily fueled by ambiguity surrounding bilateral trade agreements between Washington and New Delhi, alongside a sluggish domestic stock market triggered by an exodus of foreign capital,” Dilip Parmar, Research Analyst, HDFC Securities, told PTI.He added that a surge in geopolitical uncertainty had further boosted the dollar’s appeal. “This flight to safety followed the detention of Venezuelan leader Nicolas Maduro by American military personnel over the weekend,” Parmar said. According to him, the USD-INR spot pair faces resistance near 90.45, while support is expected around the 89.90 level in the near term.In global markets, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.27% higher at 98.68. Brent crude, the international oil benchmark, was up 0.91% at $61.30 per barrel in futures trade.SBI has predicted that the currency will be declining by around 2% in the next financial year, with the exchange rate hovering near 92 against US dollar.Meanwhile, the Reserve Bank of India’s latest data released on Friday showed that India’s foreign exchange reserves rose by $3.293 billion to $696.61 billion in the week ended December 26. In the previous reporting week, the reserves had increased by $4.368 billion to $693.318 billion.