Rupee Falls to 4-Week Low

2026-01-16 03:59 By Mariene Camarillo 1 min. read

The Indian rupee fell to around 90.6 per dollar, extending losses for another session and the lowest in four weeks amid weaker capital inflows and less dovish signals from Federal Reserve officials.

Traders cited a strong US labor market and Fed guidance that any rate cuts would depend on sustained progress toward the 2% inflation target, which has kept Treasury yields elevated and the dollar firm, leaving the rupee under pressure.

Adding to market caution, India’s economic data disappointed expectations; unemployment rose slightly to 4.8% in December 2025 from 4.7% in November, while the merchandise trade deficit widened sharply to $25 billion, up from $20.6 billion a year earlier.

The releases prompted investors to adjust their expectations toward further monetary easing by the Reserve Bank of India.



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