Rupee Gains 7 Paise as Dollar Weakens on Soft US Manufacturing Data

• Rupee opened 7 paise higher at 90.21 against the dollar on January 6, up from 90.28.
• The dollar index fell to 98.231 from 98.270, driven by softer US manufacturing data.
• December ISM Manufacturing PMI came in at 47.9, marking the sharpest factory contraction since 2024.
• Rupee has traded 0.33% lower in 2026 due to persistent importer hedging and subdued foreign equity inflows.
• US President Donald Trump’s tariff threats and FPI stock sell-offs could push Rupee to 91 levels.

Why It Matters: Rupee strengthens slightly on dollar weakness, but faces future pressure from trade tensions and FPI outflows.