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The rupee declined 4 paise to close at 90.21 (provisional) against the US dollar on Tuesday (January 13, 2026) due to higher crude oil prices, stronger US currency and sustained outflow of foreign funds.
Analysts said geopolitical tensions and weak stock markets also put pressure on the Indian currency.
At the interbank forex, the rupee opened at 90.24 and touched an intra-day low of 90.30 against the greenback. The currency ended the session at 90.21 (provisional) against the dollar, 4 paise lower than its previous close.
On Monday (January 12, 2026), the rupee rose by 1 paise to close at 90.17 against the US dollar.
Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan said the rupee depreciated amid ongoing geopolitical tensions and global risk aversion. Weak domestic markets, FII withdrawals and rise in crude oil prices also put pressure on the rupee.
“However, optimism over India-US trade deal and rising chances of a rate cut amid weak labor market reports last week may support the rupee at lower levels. Any central bank intervention may also support the rupee. Traders are now focusing on US inflation data. USD-INR spot price is expected to trade in the range of 90.10 to 90.70,” Mr Chaudhary said.
Forex analysts said market sentiments improved after the new US envoy to India Sergio Gore on Monday (January 12, 2026) said the two sides are actively engaged in cementing a trade deal.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.07% higher at 98.69.
Global oil benchmark Brent crude was trading 1.47% higher at $64.80 a barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex fell 250.48 points or 0.30% to 83,627.69, while the Nifty fell 57.95 points or 0.22% to 25,732.30.
According to exchange data, foreign institutional investors sold equities worth ₹3,638.40 crore on Monday (January 12, 2026).
India’s retail inflation hit a three-month high of 1.33% in December, mainly due to higher food prices, but remained below the Reserve Bank of India’s lower tolerance level, according to government data released on Monday (January 12, 2026).
Also, the latest data from the Income Tax Department showed that the government’s net direct tax collection increased by about 8.82% to over ₹18.38 lakh crore in the current financial year till January 11 due to slower refunds and better corporate tax collection.
Net corporate tax collections increased by 12.4% to over ₹8.63 lakh crore, and taxes from non-corporates, including individuals, increased by 6.39% to nearly ₹9.30 lakh crore.
published – January 13, 2026 06:14 PM IST
