Rupee opens 7 paise up as dollar dips

Indian rupee

• Rupee opened 7 paise higher at 90.21 as dollar index eased on softer US data
• US manufacturing PMI fell to 47.9, marking sharpest contraction since 2024
• Rupee faces pressure from importer demand and US-India trade deal uncertainty

Did our AI summary help?

The rupee opened 7 paise up on January 6 on easing dollar index amid softer US manufacturing. The currency opened at 90.21 against the dollar after ending the previous session at 90.28.

The dollar index, which measures the greenback's strength against a basket of six major currencies, fell to 98.231 in the morning trade from the previous close of 98.270.

As tensions eased, markets treated the Venezuela episode as a contained shock. “Focus quickly shifted to softer US data, with the December ISM Manufacturing PMI coming in at 47.9 versus expectations of 48.3, marking the sharpest factory contraction since 2024 and underscoring fading industrial momentum," said Amit Pabari, managing director at CR Forex Advisors. “The result was a familiar pattern: early dollar strength fading into consolidation. The dollar index eased back.”

The rupee has been trading lower by 0.33 percent so far in 2026. This is due to persistent importer hedging demand at the start of the year and subdued foreign equity inflows.

US President Donald Trump’s latest threat to further raise tariffs on Indian goods if New Delhi does not comply with demands to curb Russian oil purchases also added to the pressure.

"There is good chance for rupee to go back to 91 levels with the trade deal not happening in near future. The stock markets have also been getting sold off at higher levels and have not been able to cross the high thus implying that FPIs are taking advantage of higher level to get out of stocks too. Exporters need to continue selling on Cash/Spot basis while importer can buy the dips they get to hedge," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.