Rupee began the week in red, falling 5 paise to 90.23 against the US dollar in early Monday trade, weighed down by rising crude oil prices and persistent outflows from foreign investors. Traders said that ongoing geopolitical tensions and worries over potential US tariffs on Indian exports led foreign institutional investors to offload domestic equities. Market participants are now awaiting this week’s macroeconomic data for clearer direction. The interbank rupee opened at 90.23, marking a further decline from its previous close. On Friday, the rupee had lost 28 paise, ending the session at 90.18 against the dollar. Elsewhere, the dollar index, which gauges the strength of the US currency against six major peers, was down 0.14% at 98.75. Global crude prices also edged higher, with Brent crude futures trading 0.13% up at $63.44 per barrel. Domestic equities reflected the subdued sentiment. The Sensex fell 356.49 points, or 0.43%, to 83,219.75, while the Nifty lost 94.90 points, or 0.37%, to 25,588.40. Analysts highlighted multiple international developments affecting sentiment, including situations in Venezuela and Iran, as well as US President Donald Trump’s possible interest in Greenland. Foreign institutional investors sold shares worth Rs 3,769.31 crore on Friday, exchange data showed. The Reserve Bank of India’s latest weekly data further weighed on market confidence, showing a decline in forex reserves by $9.809 billion to $686.801 billion in the week ending 2 January. The previous week had seen reserves rise by $3.293 billion to $696.61 billion.
