The Indian rupee witnessed a decline against the US dollar on the first trading day of the year, breaching a key psychological level. Meanwhile, domestic stock markets staged a powerful rally, showcasing a divergent trend between currency and equity benchmarks.
Rupee Depreciates Past 90 Mark
On Friday, January 2, 2026, the Indian currency closed weaker against the greenback. The rupee slipped past the significant level of 90 per US dollar, settling 22 paise lower for the day. It ended the trading session at 90.20 against the US dollar, compared to its previous close.
Equity Markets Defy Currency Weakness
In a contrasting movement, the domestic equity market front displayed remarkable strength. The benchmark Sensex jumped a substantial 573.41 points, closing the day at an elevated level of 85,762.01. Similarly, the broader Nifty index surged by 182 points to settle at 26,328.55. This significant upward move indicates strong investor sentiment in the equity space, seemingly undeterred by the rupee's depreciation.
Market Implications and Outlook
The day's trading activity presents a classic scenario of divergent market forces at play. The weakness in the rupee could be attributed to various global and domestic factors influencing the currency market. Conversely, the robust gains in the Sensex and Nifty suggest that domestic investors are focusing on positive fundamentals or specific sectoral strengths within the Indian economy. Analysts will be watching closely to see if this divergence continues or if the markets move towards a more correlated path in the coming sessions. The data, reported by PTI and last updated on January 2, 2026, at 11:28 IST, sets an interesting tone for the financial year's trading.
