Rupee rises 22 paise to 89.45 against U.S. dollar in early trade

By Admin

22 Dec, 2025

Rupee Strengthens in Early Session
The Indian rupee appreciated by 22 paise to 89.45 against the U.S. dollar in early trade on Monday, December 22, 2025. The gain was supported by steady foreign fund inflows and a positive trend in domestic equity markets, which boosted overall investor confidence.

Key Factors Supporting the Rupee
Forex traders said that corporate dollar inflows and Brent crude prices hovering near the $60 per barrel mark played a significant role in supporting sentiment. At the interbank foreign exchange market, the rupee opened at 89.53 against the dollar, then strengthened further to touch 89.45, marking a gain of 22 paise over its previous close.

On Friday, December 19, 2025, the rupee had already shown strong momentum, appreciating 53 paise to close at 89.67 against the U.S. dollar.

Market Expert View on USD/INR Trend
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the USD/INR pair has appreciated around 2 percent from its recent lows. However, it remains nearly 5 percent lower on a year-on-year basis. He noted that while there is near-term consolidation, the broader depreciation trend of the rupee remains intact.

Global Cues: Dollar Index and Crude Oil
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.04 percent higher at 98.63. Brent crude, the global oil benchmark, was up 0.83 percent at $60.97 per barrel in futures trade, a level seen as manageable for the Indian economy and supportive of the currency.

RBI Intervention and Trade Dynamics
Reports also highlighted firm intervention by the Reserve Bank of India last week. Heavy dollar selling through state-run banks helped lift the rupee from its recent lows. Bhansali added that the rupee’s rise could also reflect tailwinds from a lower trade deficit in November, along with renewed buying interest from foreign portfolio investors in Indian equities.

Equity Markets and FII Activity
On the domestic equity front, markets traded firmly in the green. The 30-share Sensex was up 210.57 points at 85,139.93, while the Nifty gained 154.80 points to trade at 26,121.20. Supporting the currency further, Foreign Institutional Investors bought equities worth ₹1,830.89 crore on Friday, as per exchange data.

India’s Forex Reserves Provide Cushion
Adding to the positive outlook, India’s foreign exchange reserves rose by $1.689 billion to $688.949 billion for the week ended December 12, according to the Reserve Bank of India. In the previous week, reserves had increased by $1.033 billion to $687.26 billion, reflecting a comfortable external position.

Overall Outlook
The rupee’s early gains reflect a combination of supportive global cues, strong equity market performance, RBI intervention, and improving external indicators. While short-term stability is visible, market participants continue to watch global dollar movements, crude oil prices, and capital flows for further direction.