Indian Rupee Ends Slightly Higher Against the US Dollar

The Indian rupee experienced fluctuations during trading on Friday, January 12, 2026, before finally ending the day at 90.16 against the US dollar. This marked an increase of 2 paise from its earlier position at 90.18. Initially, the currency faced a decline, dipping to an intraday low of 90.23, as observed in the early phases of trading.

Experts attribute the rupee's early weakness to a stronger performance of the US dollar in global markets. The dollar index, which measures the value of the US dollar against a basket of currencies, showed gains that contributed to pressure on the Indian rupee. Furthermore, rising crude oil prices also weighed on the domestic currency, prompting concerns regarding inflation and the current account deficit.

As trading progressed, the rupee managed to recover some of its lost ground. Financial analysts highlight that market sentiments began to shift as economic data released in the United States showed mixed results, leading to a slight easing of the dollar's strength. Additionally, central bank interventions and investor strategies played a critical role in stabilising the rupee.

A currency trader noted, "The Indian rupee's slight recovery indicates resilience despite external pressures. However, volatility is expected to continue in the coming weeks due to uncertain market conditions."

Despite the recent fluctuations, analysts remain cautiously optimistic regarding the rupee's long-term prospects, underlining that factors such as foreign investment inflows and government economic policies will be crucial in determining its trajectory.

Looking ahead, market participants will closely monitor developments in international markets, particularly regarding energy prices and global economic indicators that may further influence exchange rates. The rupee's performance remains a key focus, as it reflects broader economic health and investor confidence in India’s financial stability.