Rupee settles 12 paise down to 90.90 against US dollar

Mumbai: The rupee depreciated 12 paise to close at 90.90 against the greenback on Monday, a tad above its record low closing level, weighed down by robust greenback demand from metal importers and persistent foreign fund outflows.

Forex traders said rising geopolitical uncertainty, including renewed US expansionary signals, has increased risk aversion and kept emerging market currencies under pressure.

Selling pressure in domestic equities further dented investor sentiment. Moreover, investors were also concerned after US President Donald Trump announced tariffs on European countries if they resisted his plan to control Greenland.

At the interbank foreign exchange, the rupee opened at 90.68 and slid past the crucial 91.01 against the greenback during the session.

It finally settled 12 paise lower at 90.90 against the dollar, just 3 paise above its record low closing level.

On December 16, 2025, the rupee reached its lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.

On Friday, the rupee crashed 44 paise to settle near its lowest level at 90.78 against the US dollar, after losing 17 paise in the preceding two sessions.

According to Dilip Parmar, Research Analyst at HDFC Securities, the Indian rupee extended its losing streak, pressured by persistent capital outflows and robust greenback demand from metal

importers.

“While the currency found technical respite at the 91.00 psychological handle — bolstered by anticipated intervention from banks — the underlying bias remains decidedly bearish. With dollar demand outpacing supply, the rupee is currently skirting the edge of a new record low beyond 91.08,” Parmar added.

According to Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, the rupee is expected to trade on a negative bias amid risk aversion in global markets and brewing geopolitical tensions between the US and European nations over control of Greenland.

“FII outflows and uncertainty over trade deal talks may also pressurise the rupee. However, a weak Dollar and easing tensions between the US and Iran may support the rupee at lower levels,” Choudhary said and projected the USD-INR spot price to trade “in a range of 90.60 to 91.30”.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.29 per cent lower at 99.10.

Foreign institutional investors offloaded equities worth Rs 3,262.82 crore on Monday, according to exchange data.