Indian Rupee Remains Weak

2026-01-06 06:43 By Joshua Ferrer 1 min. read

The Indian rupee remained weak around 90 per USD, holding its four-session losing streak and down 1% in just over two weeks, as the lack of a US-India trade deal continued to weigh on sentiment.

US President Donald Trump warned on Sunday that tariffs on Indian goods could rise further if New Delhi does not meet Washington’s demand to curb purchases of Russian oil.

This follows last year’s doubling of US import duties on Indian products to 50% over the same issue, keeping trade-related uncertainty elevated.

While the Reserve Bank of India may intervene if that occurs, as seen during bouts of weakness, the currency is expected to remain under pressure and could drift back toward the 91 level until a deal is reached.

Persistent dollar demand and importer hedging amid muted foreign equity inflows at the start of the year, added further strain.

Elsewhere, a weaker US dollar provided some support as investors awaited key US data for cues on the Fed’s policy path.



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