Rupee Gains Against Dollar Briefly; RBI Battles Outflows Amid Market Volatility

• Indian Rupee opened stronger at 89.87/$ on Jan 9, up from 90.10/$ on Jan 8, driven by mild Asian market cues.
• Despite Reserve Bank of India (RBI) interventions selling dollars, the Rupee's gains were short-lived due to continuous portfolio outflows.
• Currency traders note quick hedging by importers and lack of support from trade-deal headlines, hindering Rupee's strength.
• Regional currency markets weakened ahead of a key US jobs report, with economists expecting 60,000 non-farm payrolls and 4.5% unemployment.
• Morgan Stanley forecasts stable rates, supporting expectations of a potential Federal Reserve rate cut in January, while crude oil prices surge.

Why It Matters: Rupee's slight gain against the dollar was short-lived, as RBI efforts struggled against persistent outflows.