Rupee Starts 2026 on Negative Note, Falls 11 Paise to 89.99 Against Dollar

• The Indian rupee depreciated by 11 paise to 89.99 against the US dollar in early trade on January 1, 2026.
• Persistent foreign fund outflows were cited as the primary reason for the rupee's decline.
• Despite global uncertainty, India's strong macroeconomic parameters and ample forex reserves provide stability.
• RBI, under Governor Sanjay Malhotra, allows market adjustment but intervenes to smooth excessive volatility.
• An India-US trade deal could provide a significant confidence boost; USD/INR expected to trade between 89.30–90.20.

Why It Matters: Rupee begins 2026 weaker due to foreign outflows, but strong fundamentals offer stability.