Rupee Strengthens to 90.12 Against Dollar; Global, Domestic Factors Impact

• Indian Rupee strengthened by 18 paise against the US Dollar, reaching 90.12 on Tuesday, January 6.
• The surge was driven by a softer dollar, indicated by a lower US ISM Manufacturing PMI, and a decline in Brent crude oil prices to $61.57 per barrel.
• Gains were limited by geopolitical tensions, US military operations in Venezuela, and caution in domestic equities (Sensex, Nifty fell).
• Foreign Institutional Investors sold ₹36.25 crore in equities, and the Rupee had previously fallen for four consecutive sessions.
• The Reserve Bank of India intervened to defend the 90-mark but retreated, with analysts expecting continued efforts to mitigate volatility.

Why It Matters: Rupee strengthened to 90.12 against the Dollar due to global factors, but domestic and geopolitical risks persist.