Rupee Hits 90.12 Low Amid Strong Dollar Demand; RBI Defends Key Level

• The rupee fell to an intraday low of 90.12 against the US dollar on January 2, 2026, reversing early gains.
• Persistent dollar demand, thin market liquidity, and foreign investors being net sellers of Indian equities pressured the currency.
• The Reserve Bank of India (RBI) is actively defending the psychologically important 90 level through state-run bank dollar sales.
• Traders warn that the RBI's defense might not be enough, and a clear break beyond 90 could trigger additional dollar buying.
• On January 1, the rupee had already weakened by 10 paise to close at 89.98 against the US dollar.

Why It Matters: Rupee faces strong dollar demand, slipping to 90.12 despite RBI's efforts to defend the 90 mark.