The rupee started the week in the red, falling 5 paise to 90.23 against the US dollar in early Monday trade, weighed down by rising crude oil prices and continued outflows from foreign investors. Traders said ongoing geopolitical tensions and worries about possible US tariffs on Indian exports prompted foreign institutional investors to dump domestic stocks. Market participants are now waiting for this week’s macroeconomic data to find clearer direction. The interbank rupee opened at 90.23, marking a further decline from the previous close. On Friday, the rupee had lost 28 paise and ended the session at 90.18 against the dollar. The dollar index, which measures the U.S. currency’s strength against six major currencies, fell 0.14% to 98.75. Global crude oil prices also rose slightly, with Brent crude futures trading 0.13% higher at $63.44 a barrel. Domestic stocks reflected the subdued sentiment. The Sensex fell 356.49 points or 0.43% to 83,219.75, while the Nifty lost 94.90 points or 0.37% to 25,588.40. Analysts highlighted several international developments that influenced sentiment, including the situation in Venezuela and Iran, as well as US President Donald Trump’s possible interest in Greenland. Foreign institutional investors sold shares worth Rs 3,769.31 crore on Friday, exchange data showed. Further weighing on market confidence, the latest weekly data from the Reserve Bank of India showed a $9.809 billion decline in foreign exchange reserves to $686.801 billion in the week ended January 2. In the previous week, reserves had increased by $3.293 billion to $696.61 billion.
