The Indian rupee weakened toward 90.70 per dollar, retreating from the previous session as intensified importer hedging and soft domestic equities weighed on the currency. Steady dollar demand from importers looking to cover obligations at relatively favorable rupee levels generated immediate upward pressure on the greenback. Simultaneously, subdued local equity markets and volatile foreign flows — including more than $800 million in equity sales on Friday — curbed any sustained recovery following the recent US–India trade deal and reinforced the rupee’s vulnerability.
Last week’s unexpected RBI intervention, widely interpreted as a signal of a preferred trading band near 91, helped contain deeper losses. However, one-off dollar outflows and continued hedging activity have kept the rupee under pressure. The failure of the currency to build on brief, intervention-driven gains highlights a market view that, although the rupee’s downside may be somewhat contained, selling interest remains strong. Traders currently see support in the 90.60–90.65 range, with notable resistance around 91.
