Indian Rupee Declines 7 Paise Against US Dollar in Early Trading Session
The Indian rupee experienced a slight depreciation in early trade on Tuesday, February 24, 2026, falling by 7 paise to settle at 90.96 against the US dollar. This movement reflects ongoing volatility in the currency markets amid mixed economic signals.
Domestic Equity Weakness Pressures Local Currency
Forex traders attributed the rupee's decline primarily to a poor start in the domestic equity markets. The benchmark indices opened lower, creating negative sentiment that weighed on the local unit. This correlation highlights how stock market performance can directly influence currency valuation in emerging economies like India.
However, the depreciation was relatively contained due to significant support from foreign institutional investor (FII) inflows. These capital injections helped cushion the rupee against a more severe fall, demonstrating the balancing act between domestic market conditions and international investment flows.
FII Inflows Provide Crucial Support Amid Market Pressure
Analysts noted that without the stabilizing effect of FII money, the rupee might have experienced a sharper decline. The presence of foreign investment serves as a critical buffer during periods of domestic economic uncertainty, helping maintain currency stability even when local factors are unfavorable.
The trading pattern observed today follows broader trends in global forex markets, where emerging market currencies often face pressure from dollar strength and local economic indicators. Market participants will continue monitoring several key factors:
- Domestic equity market performance throughout the trading day
- Sustained FII investment patterns in Indian markets
- Global dollar movements and US economic data releases
- Domestic economic indicators and policy announcements
This early trading movement sets the tone for currency market activity throughout the day, with traders watching closely for any shifts in market sentiment or unexpected economic developments that could influence the rupee's trajectory against major global currencies.
