Rupee weakens against US dollar in early trade on Friday
The Indian rupee extended its weakness against the US dollar in early trade on Friday, driven by relentless outflow of foreign funds from capital markets. Foreign institutional investors offloaded equities worth Rs 4,781.24 crore on Wednesday, exchange data showed. Rupee also faced pressure after data released on Thursday showed India's trade deficit widened slightly to $25.04 billion in December 2025, compared to $24.53 billion in November and $22 billion in December 2024. Meanwhile, better-than-expected weekly US jobless claims data boosted expectations that the Federal Reserve will keep rates on hold for the next several months, while hawkish comments from Atlanta Fed President Raphael Bostic and Kansas City Fed President Jeff Scmid also dampened rupee sentiments. However, lower crude oil prices, firm domestic equities and weak American currency have limited further fall in rupee. The foreign exchange markets were closed on Thursday due to a holiday for the Mumbai municipal corporation elections.
The partially convertible currency is currently trading at 90.47, weaker by 13 paise from its previous close of 90.34 on Wednesday. The currency touched a high and low of 90.4775 and 90.37 respectively.
