Rupee starts 2026 on negative note; falls 11 paise to 89.99/ USD in early trade
Mumbai (PTI): The rupee started the new year on a negative note and depreciated 11 paise to 89.99 against the US dollar in early trade on Thursday weighed down by persistent foreign fund outflows.
Forex traders said the rupee entered 2026 with both challenges and cushions, while global uncertainty persists, India’s strong macroeconomic parameters and ample forex reserves provide stability.
At the interbank foreign exchange market, the rupee opened at 89.94 against the US dollar, then lost some ground and touched 89.99, registering a fall of 11 paise over its previous close.
On Wednesday, the last trading session of 2025, the rupee settled at 89.88 against the US dollar.
"While the calendar has changed, volatility is likely to persist. Under Governor Sanjay Malhotra, the RBI appears comfortable allowing the rupee to adjust with market forces, while remaining actively present to smooth excessive moves and maintain orderly conditions," CR Forex Advisors MD Amit Pabari said.
Progress on the paused India–US trade deal remains a key upside risk and could deliver a meaningful confidence boost if concluded, Pabari said. "For now, USD/INR is expected to trade in the 89.30–90.20 range in the near term," he said, adding that a sustained break below 89.30 could open the path toward 88.50.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 98.32.
Brent crude, the global oil benchmark, was trading lower by 0.78 per cent at USD 60.85 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 194.38 points higher at 85,414.98, while the Nifty was up 47.55 points at 26,177.15.
Foreign Institutional Investors offloaded equities worth Rs 3,597.38 crore on Wednesday, according to exchange data.
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ATF price cut by steep 7 pc, commercial LPG rate up Rs 111 per cylinder
New Delhi (PTI): Price of aviation turbine fuel (ATF), or jet fuel, was reduced by 7.3 per cent on Thursday, while commercial LPG rate was raised by Rs 111 per cylinder, as state-owned oil marketing companies implemented their monthly price revisions aligned with global fuel benchmarks.
ATF price in Delhi was cut by Rs 7,353.75 per kilolitre, or 7.3 per cent, to Rs 92,323.02 per kl, according to state-owned fuel retailers.
The reduction comes after three rounds of monthly price hikes. The rate was last raised by Rs 5,133.75 per kl, or 5.4 per cent, on December 1. Prior to that prices had risen by about 1 per cent on November 1 and by 3.3 per cent on October 1.
The cut announced Thursday neutralises more than two-thirds of the price increase that happened since October 1.
The latest reduction is expected to ease pressure on airlines, for which fuel accounts for nearly 40 per cent of operating costs.
No immediate comments could be obtained from the airlines on the impact of the price change.
In Mumbai, ATF price was revised to Rs 86,352.19 per kl, while prices in Chennai and Kolkata were cut to Rs 95,770 and Rs 95,378.02 per kl, respectively.
Fuel prices vary across cities due to local taxes.
Alongside, the price of a 19-kg commercial LPG cylinder used by hotels and restaurants was hiked by a steep Rs 111 to Rs 1,691.50 in Delhi.
The price increase comes on the back of two rounds of monthly reduction. Prices were last cut by Rs 15.50 per 19-kg cylinder on December 1. Prior to that the rate was reduced by Rs 5 per cylinder.
Commercial LPG prices are now at their highest level since June last year.
Prices of domestic LPG, used in household kitchens for cooking, remained unchanged at Rs 853 per 14.2-kg cylinder, following a Rs 50 hike in April 2025.
Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
While oil prices have moderated over the last one month, winter heating requirement have pushed up LPG rates in global markets.
Petrol and diesel prices continue to remain frozen after a Rs 2 per-litre reduction in March last year; petrol currently costs Rs 94.72 per litre in Delhi and diesel Rs 87.62.
